The goal of homeowners insurance is to safeguard your home and belongings against fire, theft, natural disasters, personal liability, and other risks. But not all homeowners are adequately covered. If you’re looking to buy home insurance, avoid these four costly mistakes that people tend to make.

Avoiding Flood Insurance

Flood insurance isn’t compulsory, and only 15% of American households purchase it, according to Mark Friedlander, spokesperson for the Insurance Information Institute.

However, when a hurricane or storm surfaces, flooding leads to greater residential losses than high winds, as per information from a 2019 report from the U.S. Congressional Budget Office. This implies that a majority of homeowners, even those with wind or hurricane coverage, aren’t insured for the worst storm threat they face. Flood insurance is usually offered by the National Flood Insurance Program through one of its authorized providers. Coverage for the contents and structure of the home is sold separately.

Not Securing Coverage Within the Required Timeframe

Adding coverage to your homeowners’ policy may be difficult if a hurricane is already making its way to your home. So, refrain from waiting as insurers may place a moratorium once a storm warning or watch has been issued so no changes to your policy can be made.

Ideally, buy flood insurance at least 30 days in advance, along with windstorm coverage if you don’t already have it.

Selecting a Deductible that Is Too Expensive

A majority of homeowners don’t pay a flat dollar rate per hurricane insurance claim like they would for theft or fire. Instead, they shell out a percentage of their home’s insured value as the deductible. This amount can range anywhere between 1% and 10%.

Hence, if your home is insured for $300,000 and you select a 5% deductible, you could be accountable for up to $15,000 before the insurer starts paying.

Having Inadequate Coverage

The goal of insurance is to ensure your costs after a disaster is taken care of. But if you aren’t careful, you could run short of money as expenses pile up. Your coverage may need to be extended to replace your personal belongings and pay for high construction costs, among other things.