DENIED house insurance due to credit score

[Anonymous]

When your credit is checked for Insurance it does not affect your credit score.  Because Insurance companies are not lending you money it doesn't count against you.

I work in Insurance.

[demi]

Thanks.  What I am concerned about is if they pull scores in California (which I don't know if they do) , my scores are hovering in the 692, 679 and 671 range.  Keep going up and down........so if I needed a 680 for insurance, I am concerned.  I am doing FHA, so not so worried from the loan standpoint.  I don't recall them ever checking my auto, certainly doesn't show on my credit report.

Of course, I guess the next logical question is if they can check scores in California, what insurance company doesn't do it.  The whole idea of credit scores and insurance makes no correlation in my mind.  But then, I am a warped individual !

[Anonymous]

I don't know if this is relevant, but I went to get some auto insurance because I was moving to a different state and I couldn't get any! I had some tickets, which was why I thought my rates were so high but uninsurable!?!?!! Apparently the insurance industry goes by something called a CLUE (KLU?, CLU?) report and mine had an erroneous lawsuit settlement on it that paid out over $20k!. Yikes! It was pretty easy to prove it wasn't me and got my CLUE report cleaned up. Now I have auto insurance with some more reasonable rates (ie, less than $1300 every 6 mos). It still irks me I unnecessarily spent all that money all this time. Oh well... Maybe something like that is happening to the OP?

[Anonymous]

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demi wrote: The whole idea of credit scores and insurance makes no correlation in my mind.  But

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The number crunchers (actuaries) at the insurance companies claim that there is a correlation between people who have low credit scores and people who make a high number of insurance claims.

Of course this doesn't explain how having a low FICO score causes some idiot to run into the back of your car when you're at a stop light ...

[Anonymous]

When an Insurance company runs a Clue report, it is run for your prior claims and also for the home you are purchasing. If the home has a history of losses, fire, flood, vandalism etc. It effects the clue score. You can be denied insurance based on prior claims of the property that you have no knowledge of.