Many insurance-related things can greatly impact a homeowner’s financial situation. One is how their homeowners insurance provider responds when they submit a claim on their policy. So, improper insurer responses to such claims, such as denying a claim for an invalid reason or without proper justification, can put a homeowner in a very difficult situation. Experienced attorneys can help individuals who have had a homeowners insurance claim denied and who suspect the claim denial was improper with determining whether they would be able to pursue litigation or other legal action in relation to the denial.
Another insurance-related thing that can have big financial impacts on a homeowner is what their premiums are for their homeowners insurance. Many things can influence a homeowner’s rate. One thing that is starting to pop up more and more as a potential influencer on homeowners insurance premium levels here in Florida is credit score.
While Florida law prohibits credit score from being considered when it comes to the setting of hurricane insurance rates, it does permit these scores to be used in the calculations for rates of other types of property insurance.
Despite this, credit score has historically been something not a lot home insurance companies in the state have looked at. It appears though that this may be changing. The number of such companies that do credit checks in relation to insurance applications/renewals has been trending up in Florida in recent times.
A typical practice for companies that do look at and consider credit score when it comes to insurance rates is to offer rate discounts to those with higher credit scores.
Do you think these kinds of practices will continue to grow in use in Florida to the point where they eventually become standard? If considering credit score were to become standard when it comes to homeowners insurance rates in Florida, what impacts do you think it would have on the state’s homeowners? In your opinion, would such a trend be a good or a bad thing, overall, for homeowners?
Source: Sun Sentinel, “More home-insurance companies are looking at your credit,” Ron Hurtibise, July 3, 2016