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Question By
Kel21

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Why is my home insurance score so low?

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Top Contributor
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Helpful to 32 out of 37 people

People - the Insurance and "Home Insurance" scores have absolutely NOTHING to do with claims you have filed.

These scores are supposedly based totally on your credit score/file, but using a different scoring  model.  The model must obviously be radically different from FICO and Advantage scores - as I have been reading complains from consumers with scores pushing 800 (real FICO) that have poor or very poor Insurance scores.

My primary complaint isn't that there is such a score, or that insurance companies apparently believe they can justify making coverage and premium decisions based on said scores (with an assumed connection between low scores and higher claims rate)...  What I have a problem with is that there is absolutely ZERO information for consumers.

If I want to purchase a home or an automobile, I know that to get a loan, and a favorable rate, I need a good credit score.  While the FICO scoring model is proprietary and "secret", we know from research done that various parts of our credit report affect the score in varying amounts - with the #1 factor being payment history, ratio of debt to credit lines being the second biggest, hard inquiries being a small, but still important part.  If I have a bunch of credit inquiries - it will affect my score.  If I have a late payment or several - it will SERIOUSLY affect my score.  If I have maxed out credit cards, it will affect my score.    It is reasonably straightforward - I can pay down/off credit cards.  I can make payments on-time.  I can not apply for a bunch of new credit accounts...  Consumers have a degree of control.

But with the insurance score - and the complete lack of honest and open answers - we don't have a clue how to improve said scores.  Follow the usual "rules" for credit and still have a low score... it just doesn't make sense.

Reply by
willclements

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Helpful to 3 out of 8 people

Crooks

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17 People Helped

Home Owners Insurance

Helpful to 17 out of 19 people

Every year I get my homeowners insurance bill and I pay it in full as soon as it comes ! It has Never been Late! And its paid in full for the  whole YEAR! And I've had NO Claims. Yet I have a Very Poor Rate... Hello .....  My agent doesn't know why either. So I guess I will be making a call to the State Insurance Comm. office to see what the Hell is going on... If they know I will post for others to do the same. If they don't know I will be calling every news channel and newspaper I can get my hands on and then my Lawyer !!!!!

2 Contributions
9 People Helped

Contact your states Attorney General

Helpful to 8 out of 8 people

I think this is a scam personally.  I don't trust any type of insurance company period.  Why don't we contact our Attorney Generals around different states and if enough people are concerned about this, the AG's office can pursue with an anti-trust suit and bring this to the light of all the American people.

Let's realize that 98% of us who use CK is because we care and we are responsible individuals that pay our taxes on time and in full, ensure that we manage our dept ratio correctly by not buying more than we can afford, etc.  We have power here to make a change.  I say we go for it. 

What do you think?

-Esteban Blanco

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245 People Helped

No real information

Helpful to 12 out of 13 people

Still no response from CK.

I have spoken to someone at our state insurance commissioner's office, who was all on-board about insurance companies using these numbers, but gave me absolutely no information on where these scores come from.  

Two different insurance agents - same story - they just know they are "proprietary".  In fact, one of them assumed it was actually  just the credit score.  He was blown away when I shared what I have found in these threads and elsewhere.  People with outastanding credit scores with very low home insurance scores.  

I spoke with someone "up the chain" at one of our insurance companies - and even he couldn't tell me anything about how the score is obtained.

I have also contacted both my US Representative, and several state legislators about this.  It isn't that I feel the insurance industry cannot use some kind of scoring system to help them mitigate risk - that is theri business.  BUT - I believe they should be required to follow the same rules as creditors - they should be required to give at least some disclosure about how those scores affect your rates (or if they will even insure you), and the scoring system should at least be revealed enough to know HOW one can improve his or her score.

I have posted before - even though the true FICO scores are proprietary (much like the insurance scores), we know that varous aspects of our credit file have differing influence - with payment history and credit utilization being the two biggest pieces.

But obviously, the home insurance score doens't follow this pattern at all - and we have absolutely no meaningful information to help us understand the scores.  They make no connection to the reality of our credit file.

The one tiny  bit I have gleaned from reading dozens of documents and web sites - credit inquiries "CAN" have a huge impact on your insurance score - but even that supposedly is a widely variable portion of that score based on other variables.

Reply by
mranayaiii

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Helpful to 1 out of 1 people

yep. just had a credit inquiry post, and my home insurance score dropped 69 points. trash.

Reply by
medievalmaggie

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Helpful to 1 out of 1 people

I would actually like to know if it has something to do with zip codes, as auto insurance does.  What is a person supposed to do-- move their house?  Is the reasoning supposed to be that the weather is more likely to target a bad zip code?  No... but that you will get vandalized, etc. more statistically often.  Or, actually-- let's get to it-- are a less responsible homeowner and potentially more apt to let needed repairs slide.  Stupid, since you can't make claims on those things anyway to the best of my understanding.  Anyone know better than me?  For a fact, that is how auto rates are decided-- credit scores plus zip codes.

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Most Helpful Response

help - same

Helpful to 12 out of 12 people

Same boat here! I have one house, never have made a claim, and have flawless credit.

yet my 'home insurance score' is crap??! why? how? who do I talk to?!

3 Contributions
18 People Helped

Same issue with low home insurance score

Helpful to 8 out of 9 people

I have the same issue of a low home insurance score and higher credit score. I have never had a claim, the premiums are taken out of escrow so they are not late and I have no idea why my score is so low.

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4 People Helped

Helpful to 4 out of 4 people

I have been in my house 7 years, no claims. Not in a high risk area. My regular credit score has taken a dive due to medical and layoffs, but it does not explain my house insurance score. Over the last 3 years it has almost tripled in cost.  It's part of my mortgage so it is collected early and paid ahead of time.  Yet it has gone from $800 to $1700 and this year almost $2700. It's added an extra $200+ on my mortgage. (At signing it was 490, last year it was $ 540 and this year I am paying $710).

how in the heck am I supposed to get my regular credit up when I am being ripped off left right & center?

we have completely redone the bathroom and the plumbing, there is nothing but improvements so how am I now a greater risk?

Top Contributor
30 Contributions
245 People Helped

Agreed.

Helpful to 7 out of 7 people

We are trying to close on a home purchase. Everything is done... Except homeowners insurance. We are getting flack because of our "low insurance score"... WHY?  Where does this mythical number come from?  No claims. No issues wih our credit. I just don't understand. 

I have asked agents where the score comes from and all any can tell me is that it is pulled like a credit report. None know what figures into the score or could explain why ours is so low. 

Why do we no have a similar consumer protection like the Fair Credit regulations?  

And Credit Karma's page with an "explanation" really doesn't shed any light on the score. 

1 Contribution
3 People Helped

Coincidence? Maybe?

Helpful to 3 out of 3 people

I also have an excellent credit score except when it comes to the home insurance. I have never made a claim and the insurance payment is automatic having never missed a payment. What I did notice is that after refinancing the score took a nose dive. It was in the 900's and now it is in the low 800's. What I am puzzled over is that CK doesn't offer a link on why this is or how to improve it. 

Reply by
estebs1978

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9 People Helped
Helpful to 1 out of 1 people

I wonder if that is what it is!  I have great credit all over the place but my homeowners insurance is "poor."  I did a refinance about a year ago.  Why would this affect it is beyond me but that would be a common denominator that we could look at.  I think we should put a formal inquiry with your states Attorney General's office and put them on the spot!  I hate insurance companies any way.  They are blood sucking machines.

Reply by
siteuntitled

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Helpful to 1 out of 1 people

@estebs1978

I don't think so.  I have a high credit score but a 'poor' on insurance score.  No claims, no refinances ever.  It just doesn't make any sense at all.

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1 Person Helped

Home Insurance Score - a big mystery

Helpful to 1 out of 1 people

This obviously is something that will require legislative (and political) action.  Though I'm not confident that our elected officials have a sufficient level of political motive or social intelligence, leveling the playing field will require some level of law or rule making.

Insurance companies - like credit card companies - run rampant over our financial well being in order to make a profit.  Congress has to force them to be honest and open.  Frankly, Congress should also find a way to limit their capability to be greedy without trampling on opportunities afforded us all by this Republic.

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