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Insurance problems and cures

Your Credit Rating And The Cost Of Home Insurance

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In New Jersey, and most states, your credit rating makes a big difference in the price of homeowners insurance.

The majority of insurance companies look at your credit score as part of their pricing for Home Insurance in New Jersey.  It may not show directly as your credit rating.  But most companies make credit history part of their process for reviewing your behavior as a home owner.

Insurance companies will charge more or less, sometimes much less, based on that combined scoring.  It can raise or lower prices by 50% or more, based on extreme cases.  We represent an insurance company that has 50 possible tiers, heavily affected by financial stability scoring.  That can really drop or raise your homeowners (or automobile) insurance price.  Others put less weight on those scores.

Two points:

1) We at GBW Insurance never see your actual credit score.  We do see the pricing tier to which that insurance company assigned you, but not the underlying factors.  The insurance company will give you an explanation of their general process; they have to in order to obey laws and regulations.

2)  Asking for a home insurance quote does not affect your credit score.  When a mortgage company pulls your credit score, that does go on your credit history.  An insurance company inquiry is a “soft” pull because it does not mean that you are taking on additional debt nor that you have done anything wrong with payments.  It does not have an impact beyond the price you would pay for insurance in that company.

A good credit rating can allow you to save a lot of money over time.

If you do have a bad credit rating, you can bring it up over time.  That’s important for a lot of reasons other than insurance prices.

You can eventually get your credit rating back to where it should be.  And in most states credit rating problems due to divorce or hospital bills can be changed for insurance scoring purposes.

If you have questions or need a quote, call GBW Insurance 800-548-2329.  Or click here to give us basic information to start a quick quote for you.

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