What Is a Good Credit Score for Home Insurance? Your Guide to Getting Lower Rates

If you’ve ever been surprised by your home insurance quote, your credit score might be behind it. Most people don’t realize that insurance companies use your credit score to help set your premium. The better your score, the more likely you’ll snag a lower rate—sometimes by hundreds of dollars a year.

Why do they care about your credit? It’s not personal. Insurers see a good credit score as a sign that you manage your money responsibly. Statistically, people with higher scores file fewer claims and cost insurance companies less. So if your score is looking sharp, you’re probably getting a better deal on your home insurance. Not great? Don’t panic. There are ways to bounce back and save—no matter where you’re starting from.

• How Credit Scores Affect Home Insurance Rates
• The Score Range Insurers Want to See
• Why Some States Treat Credit Differently
• How to Boost Your Credit and Save on Insurance

How Credit Scores Affect Home Insurance Rates

Think your credit score is just for borrowing money? Not even close. Most insurance companies quietly check your credit before quoting your home insurance—sometimes without even telling you. This has a real impact on what you pay.

Here’s what’s going on behind the scenes: Insurers use something called a credit-based insurance score. It looks a lot like your regular credit score, but focuses on things that predict risk, like how often you pay bills on time, your debt levels, and the age of your accounts. They aren’t peeking at your salary or job—they’re scanning for patterns that show how likely you are to make claims.

If your score is on the higher side (think mid-700s or up, depending on the company), you could pay up to 20-40% less than someone with poor credit. In fact, data from the National Association of Insurance Commissioners (NAIC) shows that people with bad credit often pay twice as much for home insurance as those with excellent credit.

What this means: just a few points on your credit can mean real money for your wallet. Insurers believe folks with lower scores are more likely to file big claims or even let policies lapse. Even if that’s not true for you, you’re still lumped in with the statistics. This is why keeping tabs on your credit can be just as important as mowing your lawn when it comes to your house.

Another thing to keep in mind: insurers don’t all use the exact same formula, so you can get very different home insurance quotes even with the same credit score. That’s why it pays to shop around.

The Score Range Insurers Want to See

Most home insurance companies check a version of your credit score called an “insurance score.” It’s not exactly the same as a FICO score, but they overlap a lot. Usually, if your FICO score is good, your insurance credit score will be, too.

So, what score counts as “good”? For most home insurance carriers, a credit score of 700 or higher usually lands you in the “preferred” zone. If you’re in the low 600s, you’ll probably pay more, and anything below 600 could really make your rate climb.

Want to know something wild? The difference in cost between a high and low score can be huge. A 2024 report from The Zebra shows that people with excellent credit pay up to 35% less for home insurance than people with poor credit. So even a small score boost can mean real money back in your pocket.

Lenders look at other things too—like your claims history, the age of your home, and your location—but your credit score is one of the easiest things you can change to get a better deal.

Why Some States Treat Credit Differently

Not every state lets home insurance companies use your credit score to figure out your rate. That sounds wild, right? In a few places, lawmakers decided it just isn’t fair to judge insurance prices based on credit. California, Massachusetts, and Maryland are the big three where it’s actually illegal for home insurers to factor in your credit score at all. Hawaii bans the practice for auto insurance, just to toss in another example.

The idea behind these rules is pretty basic—credit scores can be influenced by stuff that has nothing to do with your risk as a homeowner. Think job loss, medical bills, or emergencies. Lawmakers in those states decided your past financial hiccups shouldn’t mean you pay more just to protect your home.

If you’re wondering whether your state lets insurance rates rise or fall because of credit, here’s a quick look at a few standouts:

Most other states still allow insurers to use your credit score in setting home insurance rates. Honestly, if you move or shop across state lines, you’ll want to keep this in mind. The rules can literally change what you pay overnight, just based on your ZIP code.

How to Boost Your Credit and Save on Insurance

If your credit score isn’t where you want it to be, there’s no mystery to turning things around—and you could see real savings on your home insurance rates as a result. No secret hacks here; the basics really work, and some of them can give you results faster than you’d think.

• Pay your bills on time: Payment history is the single biggest part of your score. Even one late payment can hang around and drag your credit down for years. Set reminders or use autopay, if you can.
• Keep credit card balances low: Try to use less than 30% of your available credit limit. If your card’s limit is $2,000, keep your balance under $600. High balances make you look risky to insurers and lenders.
• Don’t open a bunch of new accounts at once: Every new credit inquiry can shave a few points off your score, and too many new accounts makes insurers nervous.
• Review your credit report regularly: Check for mistakes like payments marked late or accounts you never opened. Spot something weird? Dispute it right away. You’re entitled to a free report every year from the big agencies—use it!
• Don’t close older accounts: The age of your credit matters. If you can, keep your oldest credit lines open, even if you don’t use them much. It shows stability.

It works in reverse, too. If your score jumps, call your insurer and ask for a new quote. Some companies recheck your credit score when you renew, but others don’t. Don’t be afraid to shop around—home insurance rates can vary a lot between companies for people with the same score.

That’s a huge range. The difference between a good and poor score? Nearly $900 a year—money you could probably use for just about anything else.

Remember, improving your credit score won’t just help your insurance rates. You’ll likely see better deals on loans, credit cards, and even some utility bills. So a little effort here pays off in more ways than one.