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.
That sounds odd, insurance companyies do not typically run your credit score but they have another score specific to insurance that they have developped.
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
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.