Insurance companies may look at your credit history when you apply for auto and home insurance. Here is some valuable information that may help you understand how insurance companies use your credit history.
What is an insurance credit score?
A credit score is a snapshot of your credit. Insurance companies enter information from your credit history and your insurance application into a credit-scoring computer model to calculate a specific insurance credit score. Your insurance credit score ranges from 0-999, with a higher number conveying a better score.
What kind of credit information do insurers use?
Each insurer decides what information they use in the credit scoring model. Some of the more common credit factors used by insurers are:
* Major negative items – bankruptcy, collections, foreclosures and liens;
* Past payment history – number and frequency of late payments, and days between due date and payment date;
* Length of credit history – amount of time a consumer has been in the credit system.
* Homeownership – whether a consumer owns or rents property.
* Inquiries for credit – number of times a consumer recently has applied for new accounts, including mortgage loans, utility accounts and credit card accounts.
* Number of open credit lines – number of major credit cards and department store credit cards.
* Type of credit in use – major credit cards, store credit cards and finance company loans.
* Outstanding debt – how much a consumer owes compared to how much credit is available.
For more information visit http://www.autoandhomeinsurance.org/
[Keywords: auto and home insurance ]
September 12th, 2008
Homeowner spending on home improvement projects is anticipated to increase by 44 percent between 2005 and 2015, according to a 2007 remodeling industry report from Harvard. Since property insurance limits are tied to the home’s replacement cost – it is important to upgrade your home insurance policy as you upgrade your dwelling. Replacement cost is the amount needed to rebuild your home with the same quality and materials in the event of a total loss, rather than the market value. A region currently experiencing a slow real estate market may have diminished your home’s market value; however, that does not mean the cost of rebuilding will be less.
Many insurers have developed tools to help you determine a proper replacement cost estimate, and also offer a low-cost endorsement (an amendment attached to your insurance policy) that, in the event of a total loss, offers additional coverage up to 120% of your policy’s coverage amount.
Homeowners should review their home insurance coverage on a yearly basis, and it is especially important to do so before beginning any home improvement project. Increasing your coverage before renovations begin will protect you from the costs of repairing or rebuilding damage to the new addition. Your home’s replacement cost estimate should also reflect the price of the building materials and labor associated with residential construction in your community. This will fluctuate due to inflation and other factors, so ask your insurer if they offer inflation protection coverage. This coverage, which automatically adjusts your policy limits to keep pace with inflation, is usually free.
Regardless of the type of renovation, or if you haven’t reviewed your home insurance policy in at least a year, be sure a complete home insurance review is done. Adjusting the coverage limits of your policy isn’t limited to major renovations, any special changes such as finely crafted doors or moldings, uniquely vaulted ceilings, or custom windows may make your current level of protection inadequate. Your insurance agent can advise you on your limits, endorsements and available discounts
[Keywords: home insurance ]
September 5th, 2008
Homeowners insurance coverage, it’s not something Floridians find or buy easily. Only in very few states is homeowners’ insurance more expensive than in Florida. Tropical storms, lightning and tornadoes are to be blamed. Here are some tips to secure your home during the Hurricane season:
- Protect windows and glass doors.
- Keep trees trimmed.
- If a storm is aproaching clear your garden of lawn furniture, trash cans, etc.
The Fl. insurance market is very competitive and it’s likely you can get insure your home for less money if you shop around. For free homeowners inurance quotes visit this site:
http://homeinsuranceowner.blogspot.com
[Keywords: home insurance florida ]
October 24th, 2007