Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 12
Registered: ‎12-21-2008
0

Does BK affect Homeowner's Insurance rates?

My husband is currently paying about $1100.00 per year for homeowners insurance for a 1500sq ft 3bdrm 2th built in the early 1990's. 

 

From looking at this forum and also from asking around from coworkers it seems many are getting cheaper rates and I can't understand why - other than perhaps the bankruptcy.

 

My husband (he is the sole owner) has good credit across the board 720+ FICOs, but even with shopping around and bundling, I cannot get the rate any lower.

 

Our bk is due to fall off at the end of the year, and I am wondering if anyone has any experience with their homeowners insurance rates dropping after their bk falls off.

 

Valued Contributor
Posts: 1,374
Registered: ‎09-28-2014
0

Re: Does BK affect Homeowner's Insurance rates?

That does seem high, but rates vary by zip code and the stats for that zip code - crime rate, quality of fire protection service, etc. I don't know if you'll be able to get better rates when the BK falls off, as mine doesn't come off unitl 2020.

 

But here's what I found out from my insurance underwriter: I've been with American Family home & auto since 2001. MY BK7 was filed in 2010. I've been satisfied with the rates, have never made a claim. In January 2015 I bought a 2nd car and had my agent add it to me policy, although the rate seemed high. On the next renewal I noticed a line on the coverage page, to the effect of "Your discount was not as much as possible because of factors on your credit report". So I called. It took me awhile to get to the right department, but I finally got an underwriter. He told me that because my home & (1st) auto policies were in effect several years prior to filing BK & the dive in credit score, they were only "minimally" affected by the BK. But since the policy for the 2nd car was taken out only 4 years after BK, the rate was "much more adversely affected". I ended up changing the policy for the 2nd car to GEICO for over $200/yr. less, but kept the home & 1st auto with AmFam. I thought $700/yr. for the home insurance was high, but when I shopped around I got quotes as high as $2500/yr. Smiley Surprised.

 

So the question is: Did your husband get the current insurance coverage before or after BK? If taken out after BK you'll probably get a better rate after it falls off. If taken out before the BK, probably not much of a better rate when it falls off, and likely something else affecting it, perhaps the zip code.


FICO Scores: TU 720, EQ 688, EX 688
Member
Posts: 13
Registered: ‎04-12-2017
0

Re: Does BK affect Homeowner's Insurance rates?

I had American family my first 2 years in my home and last year my rate went up 400 bucks but they claim it was due to a hail storm.. I did notice at that time I was under insured and after talking to American family the value of my policy was cost to rebuild not what's owed or value so I switched
Community Leader
Senior Contributor
Posts: 5,107
Registered: ‎07-12-2012
0

Re: Does BK affect Homeowner's Insurance rates?


MikeR1 wrote:
I had American family my first 2 years in my home and last year my rate went up 400 bucks but they claim it was due to a hail storm.. I did notice at that time I was under insured and after talking to American family the value of my policy was cost to rebuild not what's owed or value so I switched

You should always insure for cost to rebuild only. Remember you aren't insuring the land as no covered peril could destroy the lot. God forbid you have a total loss the insurance company isn't going to cut you a check for the market value of your home. Insurance is to put you back to whole Smiley Happy Sit down with your agent and ask them to run your home through a cost estimator, State Farm uses a program called 360Value, I would imagine each carrier has something similar. Most lenders will force you to carry enough coverage through dwelling and extended replacement cost to cover the loan amount though.

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
732 EQ FICO 05/2017
740 TU FICO 05/2017
735 EX FICO 02/2017
$20k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $6.6k Cap1 Quicksilver | $10k Amazon Store | $14k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.