Homeowners with poor credit pay twice as much for homeowner’s insurance as those with excellent credit, a new study revealed. The study, conducted by insurancequotes.com, showed that homeowners with fair credit pay 32% more than those with excellent credit, up from 29% in 2014, while premiums of those with poor credit may increase by 100%, up from 91% in 2014.
Homeowners with poor credit pay at least twice as much as those with excellent credit in 38 states and Washington, D.C. The highest in the nation is West Virginia with a 202% increase, followed by Washington, D.C., with 185%, then Montana with 179%.
Insurers are prohibited from using credit to calculate homeowner’s insurance premiums in three states: California, Massachusetts and Maryland. In Florida, credit does not normally affect premiums, but insurers are technically allowed to take homeowners’ credit scores into consideration.
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Trudy Knockless
Trudy Knockless is a reporter on ALM Media's Business of Law desk. She has a background serving legal and insurance publications. Contact her at [email protected] or on LinkedIn at Trudy Knockless.
