Skip to main content

Homeowners Insurance Options for Homebuyers With Low Credit Scores [Video]

low credit scoreIs your credit score driving insurance premiums up?

In New York State, insurance companies are allowed to use credit score in determining the insurance premium for homeowners insurance. This means that many insurance companies will charge a higher premium if the insured has a low credit score.

I know that it doesn’t seem fair.

Insurance companies will cite the 20 years of studies that have been done on the topic, including this one done by the Federal Trade Commission in July of 2007, stating:

“(Credit) scores effectively predict the number of claims consumers file and the total cost of those claims. Their use is likely to make the price of insurance better match the risk of loss that consumers pose. Thus, on average, as a result of the use of scores, higher-risk consumers pay higher premiums and lower-risk consumers pay lower premiums.”

This may be the industry standard, but it doesn’t have to be your reality.

The video below explains how we help low credit score homeowners and homebuyers find competitively priced home insurance:

Insurance Score

Insurance companies don’t actually use credit score, which can make this issue even more confusing. Your credit score is one factor in a larger score called “insurance score.”

Digging further, only select parts of your credit score are used to determine your insurance score.

According the Wikipedia:

“Insurance scores are not meant to determine credit worthiness, but rather to predict risk.”

Good News for Low Credit Score Homeowners

There are insurance companies in New York State who choose NOT to use credit score as a factor in their home insurance rating. All you need to do is work with an insurance agency who has access to these insurance companies.

Luckily, we do. We would be happy to discuss your situation and how we may be able to help you find more competitively priced home insurance whiling maintaining high-quality insurance coverage.

Call us today at (518) 456-8888 or click here to contact us via email.

Finding quality insurance coverage at the most competitive rate is about having options and working with an insurance agent who understands how to match homeowners with right insurance company.

With access to over 30 New York State insurance companies, it would be our honor to work with you.

Thank you and good luck,

Ryan Hanley