Credit Scores Impact Homeowners Insurance Premiums
Many of my mortgage clients routinely ask me about homeowner’s insurance. I always recommend that they get quotes from their current car insurance provider, if possible, because it can mean some premium discounts for multiple policies with one company. While the credit history isn’t affected the same way it is when credit is pulled for a mortgage, credit is pulled by insurance companies as part of their process for determining your insurance premium.
Those with the best credit get the lowest possible premium payments. Borrowers with less-than-steller credit pay much higher premiums for homeowners coverage. If you have less-than-perfect credit and are buying a new home, get quotes from two or three insurance carriers. Ask about discounts if they cover your other insurance needs such as car, life, disability, etc.
Insurance is required by mortgage lenders and, if you have a loss due to something unexpected, you’ll be glad you have it, but do take time to determine the best insurance carrier for your needs, financial picture and credit history. Be sure to have your agent review the policy with you in detail so that you fully understand your coverage. Shop for the best rate available to you. Some carriers include items as part of their basic coverage while others may charge extra for the same item. Make sure that when comparing carriers that you’re comparing “apples to apples” on the coverage.