There has been a lot of talk about homeowners insurance in the news of late, no doubt prompted in part by the recent Earthquake in California’s Napa Valley area. The reality that most of their basic policies did not cover earthquake damage came as a surprise to many homeowners who found themselves facing unexpected repairs.
Not that we here in South Florida need to worry about earthquakes, of course. But I noticed that there was another trend cropping up in recent articles: late in August both The Today Show and The Street posted articles highlighting the importance of considering how someone’s credit rating could affect his homeowner’s insurance rates.
The Today Show article reports that that those with poor credit pay up to 91% more than those with a good score and that only three states–California, Massachusetts, and Maryland–prohibit insurers from using credit scores to determine insurance rates. Although the figure of 91% sounds shocking, the numbers cited in The Street seem even more disparate, possibly because the extremes are mentioned along with the averages. West Virginia is cited as the worst state for up charging those with poor credit, going upwards of 208% above those with good credit.
Although we here in Florida fall somewhere in the middle of this continuum, those with a poor credit score still have cause for concern. If the information in this post resonates with your situation, it would be in your best interests to do what you can to resolve your credit issues as soon as possible to pull those insurance rates down.
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Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.