How Your Credit Affects Your Homeowners Insurance

Your homeowners insurance rates are impacted by 5 major factors.. If you have taken a home loan ever then you must be aware of it and how important is it to have a proper credit history. In fact you should know this that insurance companies do see to it whether they would provide you with insurance or not and how much amount you will have to pay on the basis of your credit habit.

When you apply for an auto insurance, insurer would see to it that since how long you have been driving and your record of driving as well. Similarly, if you apply for homeowners insurance, insurer will see size, construction as well as the age of your house.

Down the years, insurers have been able to detect that information about persons credit has been the predictor of risk, according to the institute of insurance information, non- profit organization has been supported by casualty and property insurance business.

Insurance companies weigh the following factors in accordance to FIC:

  • 30 percent of the amount you owe. It results into number of accounts you have, how much of it is owed in existing loans, and how many accounts do have the balance.
  • 15 percent of credit history. Generally the better the score, the better will be your credit history.
  • 10 percent of new credit. If you open a lot of accounts within a short period of time, your score will become less. System also takes into consideration time when you have opened your account. In case if you have a long period of heavy payment, then it will be considered favorable.
  • 35 percent of payment history. Your score will become high if you make all the payments on time and when there are no liens, bankruptcies, or foreclosures. In case if you pay late then your score will tell that how much late payments have been done – in the eyes of the insurance companies  60 days is much less riskier than 90.
  • 10 percent of all the types of credit. It will result in your credit mix- installment loans, finance companies, retail accounts, credit cards, etc.

In case if you have a wobbly history of credit you may clean it up by:

  • Making a request for a copy of your report and but making it sure that it is absolutely correct.
  • Making your balance low.
  • Paying up of all your debts.
  • Timely payments.
  • Refraining from opening of the new accounts.
  • Re – establishing of credits in case if you had any sort of problems in past- but in a very responsible way.
  • Contact to a legitimate counselor of credit, such as consumer credit counseling services.
  • You should be aware of it that on closing your account your credit history would not disappear.
  • If you want to lower up your premiums then you can do it simply by raising up your deductible amounts.


Here is a list of more interesting reading as well that will tell you how your credit score affects your homeowners insurance rate.

5 Factors That Affect Homeowners Insurance Rates

When calculating homeowners insurance rates, insurers look at more than home value. Here are 5 of the biggest factors that affect your premiums:

  • Home’s Age and Type of Construction
  • Home’s Location
  • Claims History
  • Risk Factors on the Property
  • Credit Score

Read more here:

Surprising factors affect home insurance rates

Your home will obviously play a role in the price of your homeowners insurance. Stone front or vinyl siding? Hardwood floors or carpet? Your insurance agent will want to know all the details about what they’re insuring. More than that, though, expect your insurance agent to ask questions about personal factors that will play a role in your final insurance rate.

Read more here:

10 things that can lower or raise your homeowners insurance rates

Insurance companies get more skittish by the year, and they’re dropping homeowners. Don’t buy a home only to discover that some old leaky pipe may make your place too costly to insure. Admittedly, insurance doesn’t top the list of considerations in the hunt for a new home. It’s not as if buyers spend hours ogling nifty premiums on the home and garden channels. But just keep in mind that perky woman from the insurance commercial and the mantra she chimes: “Isn’t getting discounts great?!  … Yes!” Bone up on the insurance breaks now — when choosing a home — and it could mean thousands of dollars pocketed every year for use on the fun projects down the road.

Read more here:



And if your credit score has bumped up your homeowners insurance rates or if you’re looking for ways to reduce how much you pay for homeowners insurance, you can begin by shopping around and comparing rates. You can also lower your premiums by raising your deductible amounts.

About HUS

HelpUSell Properties is a website based on real estate services providing articles and resources in different topics such as 2nd mortgage, property for sale, appraisal, refinance mortgage rates, foreclosure, housing market, bad credit, and more for home owners and future home owners.

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