What Do Credit Scores Have to Do With Homeowners Insurance?

Article Posted by Expert Author: Carly Jorge  on 04/24/2013

 

It's normal for a credit score to be considered if you want to take out a loan or if you want goods or services before you've made a payment. However, homeowners insurance is money you pay upfront to cover you in the event that something happens to your property. So why would an insurance company consider your credit? The truth is that more and more this is happening and there's actually a pretty simple explanation. It turns out that by and large, those with lower credit scores are the most likely to make a claim against their homeowners insurance.

Does this mean that those with low credit scores will always pay more for their home owners insurance? Not necessarily. Not all companies consider a homeowners' credit score when quoting a policy. As a result, if you have bad credit and are given a high insurance quote, keep shopping around. You may find a company that doesn't check your score and who offers you a significantly lower premium. This is just one reason that it's essential to not simply take the first quotes that comes your way but to get numerous quotes, compare the coverages, and choose the one that will work best for your needs and your budget. 


Article Posted In:  Homeowners Insurance  Finding Discounts  

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