INSURANCE INCREASE

Homeowners in the bottom 20% of the credit score distribution (think FICO) pay 25% more for homeowner’s insurance than the top 20%. The higher prices aren’t the result of deferred maintenance or disputed claims. Rather, insurers expect lower-credit homeowners to be more likely to file claims after insured losses. This increase in housing costs is equal to the increase these lower rated households experience through higher mortgage interest rates.