Is My Credit Score Too Low? Factors Affecting Your Homeowners Insurance

Your credit score affects practically every major part of your life. It can be the difference when it comes to getting approved for a car or home loan and has the ability to chart your financial course moving forward. It also has the ability to alter the state of your current or prospective insurance plans including homeowners insurance.

Insurance companies use information in your credit report to calculate your overall score. This helps them to predict losses and helps determine if you, the consumer, are more likely to file a claim.

Thinking of getting this kind of coverage, but afraid your credit is too low or risky? You’re not alone. Before we look at the factors affecting your homeowners insurance premium, let’s see what this kind of insurance is and how it works for you.

Homeowners Insurance: The Basics

This kind of coverage is designed to protect homeowners against damages to a home or the contents inside. Insurance like this protects the financial aspect of a home, which can in turn help you rebuild or repair your home or any part that is damaged. From fire to theft to lightning and flooding, homeowners insurance is a wide-ranging piece of protection that would behoove anyone to have.

Factors Affecting Your Rates

Insurers also take into account your loss history. They may not want to take a chance on a risk themselves by offering you insurance. Also, insurers look at the construction type of your home, the distance of your home from things like fire hydrants and fire stations, and if you have smoke detectors or security systems in place.

Insurance companies can offer discounts for homeowners insurance bad credit customers under certain circumstances, such as being retired or having multiple insurance policies in place with carriers that offer package plans. But it’s safe to get a full list of reasons why your premium is the price it is. The insurance provider should be willing to run through things with you to outline why your coverage is too high, if that’s the case.

Keeping Your Credit Score in Check

Your credit score is the lifeblood of any major financial transaction in your life, including homeowners insurance. It’s a good rule of thumb to keep tabs on your credit score and do your best to correct any errors before trying to add on insurance policies. However, insurance agents should be willing to see how your can be covered and walk you through your best options. Having homeowners insurance is a beneficial protection piece that will keep your home, your valuables and yourself financially sound.

About Walker & Associates

If you’re in the market for a new insurance partner, do your homework to ensure a lucrative venture and positive relationship. Contact us online at Walker & Associates Insurance or by phone at (800) 213-7126 for your insurance needs. We can explain your coverage options and how much coverage will cost.