You finished a basement or added a bedroom — is your insurance still right-sized?
By Severance Calculator Editorial · Updated
The problem
Adding 600 sqft to a 2,000 sqft home is a 30% increase in rebuildable footprint. If Coverage A was set when you bought the house and you have not updated it post-remodel, you are likely 25-35% underinsured on the dwelling alone — before any post-disaster material/labor spike. Many carriers do not automatically prompt for Coverage A re-evaluation at renewal.
The data
A standard-quality 2,600 sqft New England home (post-remodel) at 2024 NAHB regional median and 2026 BLS PPI inflation: $190 × 1.00 × 1.035 × 2,600 ≈ $511,000 typical (±12%). The original 2,000 sqft baseline computed at ~$393,000. The gap created by not updating Coverage A: ~$118,000 of underinsured rebuild cost. After a total loss, that gap is paid by the homeowner.
What to do
After any remodel that adds finished square footage or materially upgrades kitchens/baths/finishes, request a Coverage A re-evaluation from your carrier. Provide updated sqft, finishes, and any permit-of-record. Add an Extended Replacement Cost endorsement (+25-50%) if you have not already.