A basement is an area or room that is sub grade on all sides, and flood waters would not drain out and away from the area naturally. The 2012 seminar spoke of positive vs negative drainage. In other words if water would flow out of area and away from bldg this would be positive drainage. All Insurance Companies have their own definitions of a basement.
Policy link: DEFINATION BASEMENT A ACM
Policy link: BUILDING ITEMS COVERED BASEMENT A DP
Policy link: CONTENTS ITEMS COVERED BASEMENT A DP
No coverage for finished floors, walls or ceilings. The only allowance is to replace with unfinished, un taped drywall. Interior doors and cabinetry also not covered.
No coverage for personal or business property in a basement except Washers, dryers, freezers and the food in the freezer which are covered under coverage B Contents only.
combo units are not covered. So move the property to an area that is not sub grade.