Insuring Families and Businesses in Dallas for over 20 years

Credit Scores & Home Insurance Rates

Dallas Home insurance: Bad credit raises the roof

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Home insurers place serious emphasis on credit scoring, and little wonder. After all, a home has far more claims potential than a vehicle, and the repair costs can be far steeper.

InsuranceJournal.com found that homeowners with merely fair credit can expect to pay 32% more for their home insurance policy than those with excellent credit. Rates for those with poor credit are 2 times higher, on average.

California, Hawaii and Maryland are the only 3 states that bar insurers from using credit data to set home insurance premiums.
 

How does my Credit Score effect my Insurance rate? 

Insurance companies use information in your credit report to help them predict how likely you are to file an insurance claim and how much that claim could cost.

In general homeowners insurance companies find that consumers with higher credit scores are less of a risk, which means these consumers are more likely to be offered insurance—and lower rates.

While consumers with lower insurance-based credit scores are more likely to file claims, those with solid credit generally drive responsibly and take good care of their homes.

To improve your credit-based insurance score:
  • Pay down debt.Pay bills on time.
  • Resist applying for new credit cards.
  • File few or no insurance claimes.


Start your same day home insurance quote now.

ThumannAgency.com
12770 Coit Road Suite 110 Dallas, TX 75251 | 
Phone: (972) 991-9100 | Fax: (972) 690-1733