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Yes, it is possible to over-dehumidify a house by removing too much moisture from the air. This can create an overly dry environment that negatively affects those with respiratory or skin issues, and may cause your skin, hair, and sinuses to feel dry. However, this is unlikely to happen with most modern dehumidifiers, as they are equipped with moisture sensors and adjustable settings. These features allow the unit to pause automatically when the desired humidity level is reached, preventing the air from becoming uncomfortably dry. In contrast, older or more basic dehumidifiers left running for too long could potentially over-dry the air. To avoid this, aim for a balance between removing excess moisture and maintaining a comfortable environment. You can often monitor your home's humidity levels using a modern thermostat for guidance.

Standard homeowners insurance policies may cover basement water damage or flooding, but only if it is caused by a sudden and accidental event that is a covered peril, such as a burst pipe or a failing appliance. Damage caused by natural flooding from extreme weather, groundwater seepage, or heavy rain is typically excluded and requires a separate flood insurance policy. Some insurers also offer an optional water backup endorsement for issues like sewer backups. Review your policy or speak with your agent to understand your specific coverage.

Proper basement ventilation is very effective at reducing humidity. Without enough ventilation, your basement is prone to mold and moisture damage. Your basement should have as much natural ventilation via windows and doors as possible, and if your budget allows, you should also consider installing an ERV system to keep basement humidity levels at bay.

Mold and mildew are the things in basements that actually cause the musty odors, but moisture is the underlying issue that causes mold and mildew growth. Addressing moisture and water problems and then removing materials that are moldy are some of the best ways to get rid of the musty odors. Preventive measures after that—like installing air fresheners and a dehumidifier—can help keep musty odors from returning.