I'm considering going for solid surface or granite instead of laminate, pretty nice bathroom fixtures, etc.  

Brrrr is almost always the way to go as long as rates are low.You can also look to partner with investors in seattle who are looking for someone willing to put some skin in the game and can also pm the property.

Or is there not enough skin in the game?

We have same basement in parents house,, we did just that.. and then coated surface of walls with waterproof type paint,, we insulated and installed drywall.. also better ventilation.. and install heat source we put in baseboard if it feels to damp we turn the heat on.if the walls are sound.. no level issue,, i'd not replace,, and drain tile and sump pump if excessive standing water..

I need me to have skin in the game. 

Also, if another peril (cause of loss), such as wind. causes damage that allows the water in (ie. wind blows roof off so raing damages the interior) then there could be coverage.Any ground water that seeps in, surface water that gets in or damages the structure, or similar are normally insured with a Flood Insurance policy.

Didnt you put some skin in the game with a down payment of at least 20%?  

@Tarik Turner so you're saying a fix and flip lender who's lending based on arv will lend 100% of the deal if the cost to buy and fix is 65-75% of the arv or less or again is there no escaping at least 10% down so they know you have some skin in the game. 

On the surface it makes sense, but why would it be double the premium.

@Vishal Didwania those numbers seem very solid from the surface.