topic Re: DENIED house insurance due to credit score in Mortgage Loans

DENIED house insurance due to credit score

Anonymous — Fri, 14 Mar 2008 18:36:25 GMT

I am closing on my first home in 2 weeks. I called the insurance company that gave me a good quote a few weeks ago and informed them that I would be coming in on Monday to purchase insurance for the home. The agent informed me that there would be a credit check that would be done. This is my first time buying home insurance so I thought that it was wired, she informed me that there usually is not a problem. I just got a call back saying that I had been denied. I just pulled all 3 FICO scores today and they are 682, 677, 712.... what is going on here? She told me that they go by a number and maybe my number is low? My option right now is to pay double the amount for insurance... I am feeling so screwed right now because did I mention I am closing in 2 weeks....

Re: DENIED house insurance due to credit score

dangphuocloc72 — Fri, 14 Mar 2008 18:54:54 GMT

some thing wrong . call them back or another company , I closed my house last month . the loan office they do everything , ( house , tax, insurance : ONE BILL TOGETHER .)

Re: DENIED house insurance due to credit score

Anonymous — Fri, 14 Mar 2008 19:19:44 GMT

Yeah, something is wrong. My scores were just like yours when I closed on my house on 2/15 and I have insurance through State Farm and was approved through Progressive too. It's around 875 per year on a 175,000 house.

Hope that helps, and congrats on your house!!!!!!!!!!!!!!1

Re: DENIED house insurance due to credit score

Anonymous — Sat, 15 Mar 2008 00:11:04 GMT

A coworker of mine had a similar problem. She was given a quote and then told two days later that they could not insure her due to insurance score. All her credit scores were over 700 so she couldn't figure out what they were talking about. The best she could get out of them was that they have their own score that takes into account her credit score plus a bunch of other factors and that gives them an insurance score. I recently left the job so I don't know what happened but I know she was on her way to speak with a supervisor since nobody could give her any firm information.

Re: DENIED house insurance due to credit score

Anonymous — Sat, 15 Mar 2008 04:00:21 GMT

Call another insurance company. I have multiple properties and encounter all kinds of reasons one company or the other will not write a policy. Don't worry, it will be OK. Call another insurance company.

Paul

Re: DENIED house insurance due to credit score

sunrise — Sat, 15 Mar 2008 15:03:42 GMT

Have you had a lot of insurance claims against your previous insurers? I have heard that insurance companies make it difficult/impossible for people with multiple claims, to get insurance.

Keep at it!

Re: DENIED house insurance due to credit score

Anonymous — Sat, 15 Mar 2008 17:17:38 GMT

I just purchased a home for 320k.

Scores

ex 682, eq 654, tu 656

Farmers insurance price

669 a year.

Find a different insurance company.

Re: DENIED house insurance due to credit score

Anonymous — Sun, 16 Mar 2008 19:15:14 GMT

Thanks for all the input, I don't have that many car insurance claims.no car accidents but they just replaced a window a few months ago due to a break in. Looks like I will be going with Liberty Mutual for $600.00 over the previously quoted price. I am so happy that this process is almost over there is always a surprise around every corner.

Re: DENIED house insurance due to credit score

demi — Mon, 17 Mar 2008 03:57:12 GMT

Does anyone know of a list of what states allow credit scores to be checked. Just another paranoia for me in the middle of my construction process. I seem to go up and down a few points as my cards are paid off, but pretty much in the 680 range. In California. As far as I know, my credit has never been checked for my car insurance.

Re: DENIED house insurance due to credit score

Anonymous — Wed, 19 Mar 2008 12:25:24 GMT

Demi, the insurance companies told me that the don't check for auto but they do check credit for house insurance. I live in MA so I am not sure if they have the same standards in CA. My lowest score of 677 just went back up to 681 over the weekend, I am not sure if this would have made any difference in their decision.

Re: DENIED house insurance due to credit score

Anonymous — Wed, 19 Mar 2008 14:49:04 GMT

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.

Re: DENIED house insurance due to credit score

demi — Wed, 19 Mar 2008 20:18:46 GMT

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 !

Re: DENIED house insurance due to credit score

Anonymous — Thu, 20 Mar 2008 15:57:25 GMT

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?

Re: DENIED house insurance due to credit score

Anonymous — Thu, 20 Mar 2008 16:43:05 GMT

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

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 ...

Re: DENIED house insurance due to credit score

Anonymous — Wed, 26 Mar 2008 01:29:55 GMT

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.