YES, your Credit Score does affect your Homeowner’s Insurance rate

Homeowner’s Insurance and Your Credit History

By Terri Woods – Terri sells real estate in Santa Cruz County and North Monterey County



Did you know that the lender is not the only one who looks at your credit score when buying a home?  Unless you have recently purchased a home or refinanced the home you are currently living in, you may not be aware that insurance companies are now looking at credit scores. Insurance companies have learned that a person’s credit history is an accurate predictor of risk. According to Insurance Information Institute actuarial studies have shown that people with a low credit score are more likely to file a claim. Since insurance companies base their premiums according to the risk they are assuming, the lower the credit score, the higher the risk. 

So, for those of you with excellent credit, congratulations! You reap the rewards of a lower premium.

For those of you whose credit scores are sub-standard, there are a few steps that you can take to assist in a lower homeowner’s insurance premium.

  • Repair your credit. Before you go cutting up those credit cards, you may want to Google some tips on ‘how’ to repair your credit.
  • Shop lenders.  Lenders do vary in interest rates, points and fees.
  • Consider raising your deductible.  Of course, a higher deductible has to make sense in your financial situation.

For more information, contact me for my FREE Home buying eBook for SMART BUYERS.

Find your next home here!

Search Homes for Sale Santa Cruz, Aptos, Capitola, Rio del Mar, Watsonville, La Selva Beach, Pajaro Dunes, North Monterey County and surrounding areas
SELLERS: Want to know your HOME’S VALUE?
Terri Woods Real Estate Signature                         Follow me on:     

About terriwoods

I help people buy and sell real estate in Oregon and California. I want to be the resource for all your real estate needs. If you have a question or even a comment - please feel free to call, email or even text. I take my customer service seriously. Visit my websites at and
This entry was posted in Buying a Home, Santa Cruz County Real Estate and North Monterey County Real Estate, Terri's Real Estate Tips of the Day, Tips on Buying a Home and tagged , , , , . Bookmark the permalink.

Your thoughts?

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s