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Can you answer how this can be used for home owners insurance?

I just got a letter from my insurance company for my house insurance saying they are introducing a credit rating factor. They want my permission to view my credit rating. HOW is this supposed to be considered as an insurance factor?

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hlpflwthat · M

It isn't an insurance factor. It's a customer factor - same as discounts on auto insurance for good grades. Your past behavior is an indicator of future behavior. Corporations like 'good' customers.

SW-User

A higher credit score shows you're more responsible and so less likely to file a claim because of carelessness or neglect..

Ynotisay · M

I know that credit scores can influence home insurance rates in a lot of states but I'm not sure about them asking when you're already in to a policy. You should call or, better yet, find out the law in your state. If you're credit rating has improved, and it's legal for them to check, you might get a break.

MikefromEP · 51-55, M

@Ynotisay: But how can a credit rating improve insurance is my question.

Ynotisay · M

@MikefromEP: Your credit score plays a role setting the premium. It's one of the ways they determine risk. Like I said, I think it's a state by state issue so you should check.

SW-User

Call them maybe..there's always a number on notices to call if you have questions...maybe people with bad credit are more likely to commit fraud according to their surveys. It also might be a scam of course