Getting Cheap Homeowners Insurance With Bad Credit
It’s nearly impossible to sidestep a credit score check during the home insurance buying process, as all major home insurance companies take CBI into account when determining your rate. Since credit reporting is almost mandatory, having poor credit will likely negatively impact the home insurance rates that providers offer you.
That being said, there are some information homeowners with bad credit should take into account to try to lessen the impact their poor score will have on their home insurance rates.
Firstly, it’s very rare that a home insurance company would outright reject your application due to a bad credit score, so thankfully, you’ll still be able to protect your property investment with home insurance no matter what.
Secondly, a credit score is never the only variable an insurance company would take into account when considering your insurance application and setting your rates. In some states, insurance companies are legally barred from even using poor credit history and CBI as a risk factor when determining your rates; this is the case in California, Maryland, and Massachusetts. (The same goes for car insurance in these states.)
If you’ve been shopping around for homeowners insurance and have been quoted high premiums or outright rejected due to poor credit, there are still steps you can take to proceed. Using a home insurance comparison platform like Insurify will allow you to shop around and compare easily to find an insurer who will offer you a better rate, even in your situation. By comparing quotes from several insurers simultaneously, Insurify can help you effortlessly determine your cheapest option.
Since insurers weigh different aspects of your CBI differently, doing a side-by-side comparison will allow you to see which provider is the most forgiving. For example, Insurance Company A may weigh late payments more than Insurance Company B, which prioritizes the number of credit inquiries. Depending on your unique situation, you can easily determine which is the better option. Get quotes from multiple companies before choosing the first rate you’re quoted.