Just wanted to share with you the importance of your credit scores and previous claims when getting homeowners insurance for your new home.
This week I was working with a young lady that had found an owner that was willing to hold a mortgage for 2 years on a home that this young lady wanted to buy. The buyer’s credit scores where not sufficient to get traditional mortgage financing at this time.
The rub came when she when to get homeowners insurance. She first applied with a well known insurance company where she had previously carried a renters insurance policy.
Because of her credit rating and the fact that she had had 2 theft claims against her renters insurance they simply would not write the homeowners insurance policy for her. The two theft claims had been filed but she never followed through on them and the insurance company never paid out any money.
Had her credit rating been better the insurance would have cost her around $650. She got quotes from 2 other insurance agencies. One was $2300 and one was $1350.
After shopping around she was able to get coverage for a little over $800.
Just wanted to use this example to help everyone understand that your credit rating impacts a lot more than just getting approval for a loan.
If you haven’t checked your credit history file lately then you might want to take this time to View Your Credit Report.