Hardwood Flooring Grades: What Your Insurance Should Pay For

What are hardwood grades?

Hardwood flooring is graded based on appearance and the number of natural imperfections visible on the surface. Select grade, also called clear grade, has minimal knots, consistent color, and a clean uniform appearance, and it costs $2-$4 more per square foot than lower grades because the manufacturer must use higher quality boards and discard more material. No.

1 Common grade has some character marks, small knots, and moderate color variation, and represents the middle of the quality range. No. 2 Common grade has more visible knots, mineral streaks, and significant color variation.

Rustic or cabin grade has the most variation and is the least expensive because it uses boards that would be rejected by higher grades. Your insurance should pay for the grade that matches your existing floor based on the like-kind-and-qualityLike-Kind-and-Quality Replacement in Insurance ClaimsYour insurance policy requires that damaged materials be replaced with materials of 'like kind and quality.' This means if you have solid hardwood ...
Read more → principle. If you have select grade oak flooring, the replacement should be select grade, not common grade, even though they are both oak.

On a 500-square-foot replacement, the difference between common grade at $6 per square foot and select grade at $9 per square foot is $1,500 just for materials. A common mistake homeowners make is not knowing what grade their existing flooring is, which makes it easy for the estimate to default to a cheaper grade.

Why does wood species matter?

Different wood species have dramatically different costs, hardness ratings, and visual appearances. Red oak is the most common residential hardwood and costs $4-$8 per square foot for materials, depending on grade. White oak is slightly harder and more water-resistant, running $5-$10 per square foot.

Maple is very hard with a smooth, light appearance at $6-$10 per square foot. Hickory is one of the hardest domestic species with dramatic grain variation at $6-$12 per square foot. Walnut is a premium dark hardwood at $8-$14 per square foot.

Cherry is a premium species that darkens beautifully with age at $7-$12 per square foot. Exotic species like Brazilian cherry (Jatoba), teak, and mahogany can cost $10-$20 or more per square foot. If your home has walnut floors, the replacement should be walnut, not oak, because they are fundamentally different products with different color, grain, hardness, and value.

Species affects not just how the floor looks but how it feels underfoot, how it wears, and how it ages over time. Substituting a cheaper species violates the like-kind-and-quality standard in your policy. See also the guide on like-kind-and-quality replacement for the broader principle, and the guide on matching requirementsMatching Requirements in Insurance ClaimsMost insurance policies require restoration to pre-loss condition. When damaged materials are part of a continuous surface — like flooring that run...
Read more → for situations where the new flooring needs to match existing flooring in adjacent rooms.

Plank width and installation method

Older homes often have narrow strip flooring at 2-1/4 inches wide, while newer and higher-end homes may have wide plank flooring at 5 inches, 7 inches, or even wider. Width has a significant impact on cost because wider planks require higher-grade lumber with fewer defects, since any knot or imperfection is more prominent on a wider board. A 5-inch plank in the same species and grade can cost 20-40% more per square foot than a 2-1/4-inch strip.

Installation method is equally important. Site-finished floors are sanded, stained, and sealed in place after installation, which creates a seamless surface with no micro-bevels between planks and allows for custom stain colors. Pre-finished floors are sanded and coated at the factory, which is faster to install but has small bevels between planks and limited stain options.

Site-finished hardwood costs $4-$8 per square foot more than pre-finished for the sanding and finishing labor. If you have site-finished floors and the estimate prices pre-finished, the appearance will be visibly different and the cost will be significantly lower than what a proper replacement requires. Your insurance estimate should specify the plank width, species, grade, and whether the floor is site-finished or pre-finished, because each of these variables affects the price.

Solid vs. engineered hardwood

Solid hardwood is a single piece of wood all the way through, typically 3/4 inch thick, and can be sanded and refinished 3-5 times over its 50-100 year lifespan. Engineered hardwood has a thin real wood surface layer, called a veneer or wear layer, bonded to a plywood or HDF core, and can only be refinished once or twice if the wear layer is thick enough. Solid hardwood costs $8-$20 per square foot for materials depending on species and grade, while engineered hardwood costs $5-$15 per square foot.

The price gap on a 500-square-foot kitchen and dining area can be $1,500-$5,000 or more, making this one of the most significant like-kind-and-quality issues in flooring. If you have solid hardwood, the insurer cannot substitute engineered hardwood to save money because they are fundamentally different products with different lifespans, refinishing capabilities, structural properties, and market values. Some adjusters may not understand the difference or may assume all hardwood-look flooring is the same.

Laminate is yet another category entirely and costs even less. See the guide on solid versus engineered versus laminate flooring for a detailed comparison. A common mistake is not checking whether the estimate specifies 'solid hardwood' explicitly, because a vague line item like 'hardwood flooring' could be interpreted as engineered, which costs less.

What to do

Before any work begins, take the time to thoroughly identify and document your existing flooring because this documentation is your strongest tool for getting the correct replacement. Measure the plank width with a tape measure and record whether it is 2-1/4 inch strip, 3-1/4 inch, 5 inch wide plank, or wider. Look at a cross-section at a transition, threshold, or floor vent to determine if the flooring is solid wood all the way through or has a thin wood layer over plywood (engineered).

Note the species by examining the grain pattern and color, since oak has prominent open grain, maple is smooth and light, walnut is dark with swirling grain, and hickory has dramatic color variation. Take close-up photos showing the grain, color, character marks (or lack thereof for select grade), and the plank width. If you can find the original purchase records or know the flooring brand and product line, include that information.

Compare these details to what your insurance estimate specifies and flag any discrepancies in writing to your adjuster. Be specific by saying something like 'the estimate specifies 3-1/4 inch common grade pre-finished oak at $7 per square foot, but my existing flooring is 5 inch select grade site-finished oak, which is $14-$18 per square foot. ' The more specific your documentation and request, the more likely the adjustment will be made.

See also the guide on subfloor replacementSubfloor Replacement After Water Damage: What You Need to KnowWhen water saturates your flooring, it often damages the subfloor underneath. Subfloor replacement is one of the most commonly omitted items in wat...
Read more →, which is often needed under damaged hardwood flooring.