I live in Ma. Does anyone know where I can get some house insurance that do not include a credit check?

Question

Here in Ma, insurance companies run credit checks on people before they give you insurance. I have horrible credit so I get screwed and have to pay about $1000 more for insurance than I usuall would. It shouldn't matter about my credit because the insurance is part of the escrow so the nortgage company pays it. In fact I had paid for a year up front last year. The insurance company cashed my check it cleared then they ran their credit check and said they wouldnt insure me. I am just getting tired of getting screwed by the MAN. Any help would be greatly appreciated

Answer 1

Vermont Mutual writes in MA & does not do a credit check. Look in your local phone book - they only write coverage through independent agents.
Or, try their website - www.vermontmutual.com & click on find an agent & you should be able to find an agent in your area.
Also, any insurance company that runs credit should run it BEFORE they bind coverage. All the companies that we use do this.

Answer 2

All insurance companies run credit checks. It's not because they are afraid your premium check will bounce - if it does bounce they just cancel the policy.

Insurance companies run credit checks as one of the things they consider in evaluating a risk. Statistics show, that those with bad credit are more likely to incur a loss....ie they are a higher risk.

You may be one of the honest people with bad credit but thanks to the dishonest people (who get behind on their bills and rather than sell the house or face foreclosure,choose to burn the house down instead) you get to pay a higher premium.

Just another way that insurance fraud affects us all.

Answer 3

No. Here's why: There's a direct corrolation between low credit scores, and claims. No one knows why, but it's there. So if A company does credit scores, and B company does not, then all the people with low credit scores are going to go to B company, and because there will be more claims filed, the rates have to go way up.

So as soon as one company in a territory starts doing credit scores, they ALL have to, or their claims go up.

It DOES matter about your credit. The REASON it costs more isn't because they think you're going to stick them for the premium - it's because you're MUCH more likely to file a claim. It's a risk factor - just like owning a dog. If you own a dog, you're MUCH more likely to have a dog bite claim than someone who, well, doesn't own a dog.

It doesn't mean you WILL. But it DOES mean you get lumped in with all the other people with low credit scores (or dogs), and your claims get divided among the people in your group.

Answer 4

All insurance companies run a credit check. So, either you pay now or later.