Does Your Credit Score Affect Your Homeowner’s Insurance Rate?

When you are looking to purchase a new home insurance policy, you may do some research online to find out what factors affect the amount you will pay. As you research, you may come across information that states that your credit score will affect your home insurance rates, leaving you to wonder if this is true. Here is some information from Western Republic Insurance Services about credit scores and insurance rates.

Do Insurance Agencies Look at Your Credit Score When Determining Your Rate?

By law, insurance companies in the greater Huntington Beach, CA area can look at your credit score when determining what amount to charge you for any type of insurance policy, including auto, home, business and life insurance. However, this does not mean that every company will run your credit score or look at it when determining your rate. That is up to the insurance company.

Why Does Your Credit Score Impact Your Rate?

When you obtain an insurance policy, you typically make monthly payments on the insurance policy. If your credit score is low, it typically shows that you have a history of not paying your bills on time or at all. This is a liability for the insurance policy. They cannot simply cut off your policy if you fail to make a payment. They have to provide you notice they intend to terminate your policy and give you time to bring your account current. If something happens during this timeframe, they still have to provide you with coverage, even though it has not been paid for, which is a liability and the reason they may charge more if you have poor credit.

When it is time to buy a new homeowners insurance policy in the Huntington Beach, CA area, let Western Republic Insurance Services assist you. We look at many factors to determine a fair and reasonable price for your homeowners insurance policy. Give us a call today or come by our office to obtain a free price quote.