Homeowner’s insurance is no doubt a necessary expense, but unfortunately, some people are unable to afford it and they really don’t understand why it costs as much as it does. Many individuals simply accept sub-par coverage and policies with low limits and little to no protection. Without the proper amount of insurance coverage, an individual is at risk of facing a complete and total loss of their house and all of its contents. There is also the possibility of facing a lawsuit alone when it comes to liability situations from injuries sustained on the property. Homeowner’s insurance is not something that should be avoided or ignored, so it is important to understand what can increase its cost.
Poor credit scores are one of the primary reasons that individuals either get declined for coverage or face higher premiums. Although this may seem unfair, the insurance industry has proven that there is a higher incidence of claims filed among this population. As a result, there is more risk to the insurer and the premiums increase. It is important to be a well-informed consumer, so insurance seekers should pull their report from one of the three credit bureaus and learn their credit score. Continue Reading