Did you know that Homeowners with median or fair credit can pay more for insurance than those with higher scores?

Status: Open
Aug 26, 2015 Answer a Question

According to insurancequotes.com This margin can be as much as 32% higher.

About 6 years ago
Yes, because most insurance companies use credit-based insurance scores to help determine risk. (Unless you live in Massachusetts, Hawaii, or California, where the practice has been banned.) An insurance score is a score calculated from information on your credit report. Insurance companies believe credit information is very predictive of future insurance claims, which is why most insurers, use this information to help develop their insurance rates. Credit score is just one piece of the puzzle, they will also look at past claims made on previously owned properties, claims made on the subject property and the age of major items like the roof. They will use all of this information to determine your insurance rate.
About 7 years ago
That sounds odd, insurance companyies do not typically run your credit score but they have another score specific to insurance that they have developped.
About 7 years ago
That's absolutely correct. Also, don't forget to inform your agent of any security/sprinkler systems installed as that may lower the annual premium. Depending on the insurance company, they may simply request you forward a certificate from the provider of the system(s).

Also, keep your agent informed of any remodeling or the installation of a new roof as this may affect your RCV (Replacement Cost Value) and adjustments may be needed on the amount of coverage for the Dwelling.

Candace Dolan
Licensed Insurance Agent/Realtor
713-653-4769
About 8 years ago
Homeowner's insurance rates are usually calculated based on the owner's credit score, past claims made on previously owned properties, claims made on the subject property and the age of major items like the roof.
About 8 years ago
Yes, I have seen that. Higher the credit score better the rate you get. Also it depends on the claims you have made before, background, income, etc.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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