If you are looking for Homeowners Insurance in Texas with Poor Credit, you will likely find that the quotes you are receiving are unbelievably high. But, this doesn’t have to be the case. If you become aware of how the insurance system works, you will be able to find great rates on your home insurance even if you have poor credit. Saving you thousands of dollars a year, in many cases.
I recently quoted a home owners insurance policy for a family in Fort Worth, Texas. Like many people today, they had experienced some difficult times and had some major credit problems. We priced their home insurance coverage with 15 different major Texas homeowners insurance providers and based their coverage on a 200K value for the home. We included all of the important homeowners insurance coverage. What we found was the premiums ranged from a low of $ 745.00 for 12 months to a high of $ 4207.00 for 12 months, for identical coverage! How crazy is that?
The difference is that the company that offered the cheapest premium did not penalize them for having had some credit problems. If fact, they did not use credit scoring, at all, in determining their premium. Imagine how happy this family was to find this option available to them.
The Key to finding the best prices available for home insurance, if you have had some credit problems, is to locate the companies that do not use credit scoring to determine your pricing or eligibility. You might ask, how do I do this? Well, it begins by exposing a few myths about homeowners insurance:
Myth #1: All insurance companies use credit scoring to determine your rates.
Answer: This is not true, at all. While the vast majority of companies do charge more if you have had some credit problems, there are still a few companies out there that do use this practice. They charge you based on the coverage amount of your home, the age, condition and location of the property and your claim history. You will need to locate these companies. Just ask if the company uses poor credit against you, when you are getting quote comparisons.
Myth # 2: My current insurance agent is getting me the lowest rates available. Because, “they said so.”
Answer: Most agents only represent one company and obviously the odds are against the fact that you have the best rates available. They may be getting you the cheapest rate “they” have available, but they only represent one company and one price. You need to shop around with multiple companies, to be sure. Especially, if you have any type of special circumstances like credit related issues.
Myth #3: I don’t have time to shop around with multiple companies to find the best rate. I’m too busy.
Answer: Deal with an independent insurance agent or broker that represents many different companies. You will have the ability to check on as many as 15 different homeowners insurance company’s rates through just one agency/agent. Ask for a company that does not use credit scoring.
Credit scoring in insurance is a very controversial subject and an often discussed topic. Insurance companies maintain there is a direct connection between a person’s credit score and the likelihood of them filing an insurance claim. Consumer groups argue against this and state that credit scoring unfairly impacts low income and minority consumers as well as people with temporary financial difficulties. Regulators continue to review this practice and will ultimately determine how it will be used moving forward.
Whatever your take on this subject, the fact remains that many people are unnecessarily paying way too much for their homeowners insurance because of credit problems. This happens every day, all over the entire State of Texas including Dallas, Fort Worth, Austin, San Antonio, East Texas, Central Texas and El Paso. Don’t let this happen to you.
