The Gap Between Cheap Homeowners Insurance In Florida And Excellent Credit Rating

Did you know your credit history can significantly affect your homeowners insurance rates? Yes, if on an average, you have a poor credit rating, your premium will be double the rate of a homeowner whose credit history is excellent. According to a study, homeowners who have “fair” credit ratings pay an average of 36 percent more than who has an excellent credit rating.

Here are some questions and answers about the relationship between credit reports and insurance premiums:

Why Credit Scores Matter?

Basically, credit score is a risk factor that insurers consider while setting a premium rate. Homeowners who have poor credit ratings tend to file claims frequently. Therefore, if you have a poor credit score, on average, you will be paying more for homeowners premiums.

How To Maintain A Good Insurance Credit Score To Get Cheap Homeowners Insurance In Florida?

According to FICO, consumers can maintain good credit by, limiting the number of new credit cards or loans, paying bills on time and keeping card balances low.

Is There Any Way To Lower My Premium If I Have Poor Credit?

Shop around: If your credit history doesn’t support you getting lower insurance rates; shop around. The formulas used by the providers to create scores vary, therefore, one insurance company may offer lower rates than another.

Ask for rerating

You can ask your insurer to review your premium, once every 12 months, for a possible reduction called rerating.

Other ways to lower your premium includes:

  • Home improvements,
  • Installation of fire and burglary alarms
  • Other protective devices like fire extinguishers, sprinkler systems, deadbolt locks and smoke detectors are installed in your home.
  • Installation of hurricane shutters
  • New roof
  • Proximity to fire department
  • Age of your home: older homes have higher premium rates
  • The size of your home
  • Structure type: the cost of premium differs for wooden and brick homes.
  • Claim history
  • Bundle your policy

Read: What Factors Are Considered In Establishing Your Homeowners Insurance Premium In Florida?

Contact us!

If you have a poor credit history and getting cheap homeowners insurance in Florida has now become a dream for you, please contact our professional insurance agents at We would love to serve you!

Read: 6 Tips To File A Claim On Your Homeowners Insurance Policy In Florida