How Does Your Credit Score Affect the Cost of Your Homeowner’s Insurance Policy?

Like most other insurance policies, your credit score will definitely have an effect on the price of your home insurance. You may be thinking, “what does one have to do with the other?” Well, insurance companies view people with low credit scores as high risk because they are unpredictable, and are seemingly less responsible. It seems unfair, but it is the job of the insurance broker to decrease risk as much as possible. Therefore, credit score is one of many factors that affect your homeowner’s insurance policy.

 

First, your insurance agent will look into your payment history. If you have a reputation of not paying your outstanding debt, then they will stick you with higher premiums on your home insurance. They will also look into how much debt you currently have and consider that as well. The amount of time you have possessed a line of credit, how many times you have pursued new credit, and the different types of credit you have owned will all come into play as well.

 

At Insurance Navy in Palos Hills, we provide the best and cheapest homeowner’s insurance in Illinois. If you own a home in or around the city of Chicago, the Insurance Navy agents will help you find an affordable home insurance policy that fits your needs. To learn more about our low-cost homeowner’s insurance policies, please visit our website: www.insurancenavy.com

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