This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Homeowners Insurance Cost Too Much? Check Your Bad Credit

NEW YORK (TheStreet) — The cost of homeowners insurance is rising steadily, at a 50% clip over the past 10 years.

Average costs vary state to state, with Idaho at the lowest cost on average, $518 per year, and Florida homeowners paying the most, $1,933 per year.

Weather, a home's size and its neighborhood are all factors when companies price homeowners insurance. But there's an-under-the radar factor that can move homeowners insurance upward: bad credit.

Read More: Key to Quick Insurance Claim Turnaround? Doing a Home Inventory

According to, homeowners with lousy credit can pay up to 91% more. Even having mediocre credit can hurt you with homeowners insurance — bringing payments 29% more, on average, then those of consumers with excellent credit.

Again, prices vary on a state by state. In West Virginia, for example, people with poor credit pay 208% more than those with stellar credit. Virginia, Ohio and Washington, D.C., also post high rates on homeowners insurance for consumers with bad credit.

Consumers with a toxic credit score catch a break in three states: California, Massachusetts and Maryland. In those states, insurance companies are barred from using credit to calculate homeowners insurance.

In some states, weather trumps credit. For example, in Florida, where homeowners' insurance rates are twice the national average, hurricane risk is a much bigger factor than credit, Adams notes.

To insurers, the equation is all about risk — the less of it the better.

Read More: 3 Tips on Getting a Higher Credit Card Limit

"This is another example of why credit is such an important part of your financial life," said Laura Adams, a senior analyst at "Maintaining a good credit history suggests that you're a less risky customer and can lead to several hundred dollars in annual homeowners insurance savings."

To try and curb rising homeowners insurance rates due to bad credit, make sure to check your credit score on a regular basis (you can get a free copy of your credit report at

Check for errors and unpaid bills and resolve those issues as soon as possible. Contact your insurance company as your credit rating improves. You may be able to cut a new deal based on a better credit rating, but you'll never know for sure until you talk to your insurer.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs