Getting Cheap Homeowners Insurance With Bad Credit

Getting around a credit check during the house insurance purchasing process is practically impossible because all major home insurance providers consider credit bureau information (CBI) when setting your quote. Because credit reporting is almost mandated, low credit will certainly hurt the house insurance prices that carriers offer you.

With that information in mind, there are some pieces of information that homeowners with poor credit should be aware of to try to mitigate the influence that their poor credit will have on their house insurance costs.

First and foremost, it is quite rare that a home insurance provider will outright reject your application due to a poor credit score, so you can rest certain that you will be able to safeguard your property investment with home insurance regardless of your financial situation.

Second, a credit score is never the only variable taken into consideration by an insurance provider when evaluating your insurance application and determining your prices. In other states, including California, Maryland, and Massachusetts, insurance companies are prohibited from considering your bad credit history and CBI as risk factors when establishing your rates. For car insurance, the situation is the same in these states.

If you have been looking for homeowners insurance and have been quoted exorbitant premiums or outright rejected owing to poor credit, there are still actions you may do to move forward. The use of an insurance comparison website allows you to shop around and compare quickly to locate an insurer who will provide you with a cheaper cost, regardless of your current financial status. While using those types of sites, you can quickly and easily compare quotes from multiple insurers simultaneously, allowing you to find the most affordable alternative.

Because different components of your CBI are weighed differently by different insurers, conducting a side-by-side comparison will allow you to determine which carrier is the most lenient. For example, Insurance Company A may place greater emphasis on timely payments than Insurance Company B, which emphasizes the number of credit queries. You can quickly assess which is the greatest option for you based on your specific situation. Get quotations from several different businesses before settling on the first-rate you're offered.