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Why is a credit score used in rating homeowners insurance?

April 26, 2017Credit score homeowners insurance rating Used

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Why is a credit score used in rating homeowners insurance?

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Statistical and insurance companies have done analysis comparing individuals’ insurance credit scores with insurance loss history, and claim to have found a significant correlation between the two. This information is considered to be predictive of future loss experience, thus making it a useful tool for companies to use in matching homeowners to a proper premium level.