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- The NFIP defines a basement as any area of a building with a floor that is below ground level on all sides. Rooms that are not fully below ground level (such as sunken living rooms, crawlspaces, and the lower-levels of split-level buildings) may still be considered basements because the lowest floor is below ground on all sides.www.fema.gov/fact-sheet/what-does-flood-insurance-cover-basement
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