You renovated the kitchen and primary bath — finishes alone may push you 15-25% underinsured
By Severance Calculator Editorial · Updated
The problem
Unlike additions that add square footage (which most carriers do prompt for at renewal), finishes-only renovations slip under the radar. A $90,000 kitchen renovation that replaces builder-grade cabinetry and laminate counters with custom inset cabinetry and quartz, a $60,000 primary bath renovation, and a hardwood-floor refinish across 2,000 sqft can shift the home from "standard" tier (1.00x) to "custom" tier (1.25x) on most rebuild cost models — yet the Coverage A on file is still calibrated to standard.
The data
A 2,400 sqft Mountain-division home at NAHB 2024 standard median $172/sqft: standard tier = $413,000; custom tier (1.25x) = $516,000. The finishes-only renovation just described costs the homeowner ~$180,000 out of pocket, but the Coverage A shifts by $103,000 — a real underinsurance liability that does not show up until a total loss exposes it. United Policyholders cites finishes-tier misclassification as a leading cause of underinsurance distinct from sqft additions.
What to do
After any renovation over $50,000 — even if no square footage is added — request a Coverage A re-evaluation. Provide your contractor invoices and a photo inventory of upgraded finishes (countertops, cabinetry, flooring, fixtures, appliances). Re-rate the home at custom or luxury tier as appropriate. Consider scheduling high-value built-ins (wine rooms, theater rooms, smart-home integrations) on a separate inland marine endorsement so they are not lumped into Coverage A averages.