Homeowner’s Insurance Went Up? This Might Be Why

Many consumers do not know that their credit score is used to calculate their homeowner’s insurance. Homeowners with a fair credit score could pay 32 percent more for insurance, on average, than someone with excellent credit, according to a recent study by Quadrant Information Services, commissioned by InsuranceQuotes.com. A homeowner with poor credit will pay twice as much, on average, as a homeowner with excellent credit. The numbers are higher than those from a year ago. “We’re not sure if that trend will continue, but I do think it’s a sign that insurers are leaning more heavily on credit as a risk indicator,” says Laura Adams, senior insurance analyst at InsuranceQuotes.com. Insurers are focusing more on credit because it continues to be a good indicator of whether or not a consumer will make a homeowners insurance claim. Statistics show that the worse the credit, the greater the chances that the consumer will file a claim. | Read More