Home insurance rates by credit score is a pricing mechanism used by insurance companies to determine the cost of homeowners insurance based on an individual’s credit history and score.
Insurance companies use credit-based insurance scores, which are different from traditional credit scores, to assess an individual’s financial responsibility and predict the likelihood of filing a claim. Individuals with higher credit scores are generally considered to be less risky and are offered lower insurance rates, while those with lower credit scores may be charged higher rates.
