The Impact of Credit Scores on Home Insurance Rates

Insurance companies often use credit-based insurance scores to assess risk. They believe there's a correlation between credit history and the likelihood of filing a claim.

Home Insurance Insights

WHY IT MATTERS

Improvement Strategies 

Ensure timely bill payments, maintain low credit card balances, and diligently monitor credit reports for inaccuracies.  Enhancing credit scores could yield reduced insurance costs.

Stay Well-Informed

Regularly monitor credit scores and carefully review a home insurance policy.  Positive changes in a score might translate to substantial savings on premiums both HOME & AUTO.

Key Consideration

Credit score's impact extends beyond loan applications. Maintaining a favorable score could lead to notable savings on home insurance premiums.

What is a credit-based insurance score?

A CBI score, also called an insurance score, is a number that describes your overall credit stability in the eyes of an insurance company. It's one of several factors that homeowners insurance companies may use to determine what rate to offer you.

Factors that positively affect your CBI score

• Long credit history

• Several bank and credit accounts in good standing

• No late payments

• Low credit usage

Factors that negatively affect your CBI score

• Bank or credit accounts in collection

• Numerous past-due accounts

• High use of available credit

• Numerous recent applications for credit