Does Your Credit Score Affect Your Insurance Cost?

medium_11703239236Credit scores are used for a wide variety of things. You're probably most familiar with them when it comes to applying for your loans to buy your rental property and when you run tenant screenings on potential tenants. Did you know that it can be used to judge what kind of premiums you'll pay on your insurance that you use to cover your rental property?
When you begin to shop around for homeowner's insurance quotes an agent may ask you for your social to run your credit. They'll perform a soft check, meaning that it won't negatively affect your credit score, but they may use that score to calculate what they call an 'insurance score' that, they believe, will help to decipher the risk you pose to them. While it has been debated as to if a person's credit history really will predict if a person is more or less likely to file a claim, it's always a good idea to have an idea how and why your social security number may be requested when you begin to look for the best insurance for the home.

POSTED September 02 2014 2:29 PM

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