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Insurance Warehouses of America

6200 Metrowest Boulevard , Suite 204
Orlando, FL 32835

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Does Your Credit Score Affect Home Insurance Coverage?

Homeowners strive to make smart financial decisions. Often, the outcome of those choices will affect your home insurance coverage. Insurance Warehouses of America in Orlando, FL can evaluate your credit score and create a policy that protects your residence.

How a Credit Score Affects Home Insurance Coverage

Insurance companies use a formula to determine if offering a home insurance policy is a financial risk. Their final decision goes beyond the home’s location, size, and current condition. Your personal credit history will have an impact on the coverage offered.

Your credit score does not have a direct effect on the status of the home insurance policy. Instead, it becomes part of your overall credit-based insurance score, which will determine if you are a policyholder or not.

What is a Credit-Based Insurance Score?

Credit-based insurance scores help decide if you are financially responsible enough to handle a quarterly bill plan. The criteria are slightly different from a FICO credit score, which is used to secure a personal loan or credit card. Insurance companies will run their version of a credit check to determine if you can pay bills on time. The credit-based insurance score is based on your credit history and other financial documentation submitted with the application.

A poor credit-based insurance score cannot be the sole reason you were denied home insurance coverage. Instead, you will be labeled" a poor credit risk," and lenders may request you to pay a higher premium. 

Can Bad Creditors Get Home Insurance

Despite all of your financial hardship, it is possible to receive a home insurance policy. However, you will pay a higher premium than other homeowners. Your premium rates could change if you improve your credit-based insurance score before renewing your policy. It can be accomplished by paying bills on time and keeping existing credit card use to a minimum.

If you are having trouble gaining home insurance coverage, Insurance Warehouses of America in Orlando, FL can help navigate an unfriendly market. Our staff’s experience and knowledge of the state requirements help create an effective policy for homeowners with credit issues. Call and schedule an appointment today. 

Partner Carriers

  • Bristol West
  • Foremost
  • Infinity
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  • Bankers
  • Capitol Preferred
  • Federated National
  • Florida Family
  • Florida Peninsula
  • Heritage
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  • St. James
  • Universal Property & Casualty