Getting Home Insurance With Bad Credit


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Key Takeaways

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The average annual cost of home insurance with $250K in dwelling coverage is $2,614 for someone with a good credit score, $4,437 less than the rate for those with bad credit.

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For a home insured with $250K in dwelling coverage, American Family offers the lowest average yearly cost at $3,365.

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Getting a home insurance quote without a credit check is guaranteed only in California, Maryland and Massachusetts.

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Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.

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Bad Credit Homeowners Insurance

If you have bad credit, your home insurance costs are likely much higher than those with good credit. Learning more about how companies use your credit score to determine your premiums can give you insight into the process and ways to lower your insurance costs.

Generally, insurance companies use your credit-based insurance (CBI) score to determine your rates. While models used to calculate someone’s CBI vary by insurance company and are proprietary, some known factors affect it. 

Factors that can produce a high (good) CBI score are:

  • Low credit usage
  • Good payment history without late payments
  • A mix of credit accounts in good standing
  • Long credit history

If a home insurance credit check comes back with these factors, you could receive a low (bad) CBI score and pay more for coverage:

  • Collections on accounts
  • Late payment history
  • High credit usage
  • Multiple recent credit applications

How Bad Credit Affects Home Insurance

Your credit score greatly affects what you pay for insurance. Based on your home insurance credit check, you might pay hundreds more yearly for homeowners coverage. For example, the average annual cost of home insurance is $2,614 yearly for a policy with $250,000 in dwelling coverage. Someone with bad credit pays about $7,051 yearly.

Research shows people with poor money management habits tend to file more claims. Insurance companies rarely deny coverage for bad credit. Instead, they charge higher rates to account for the increased risk.

Cheapest Home Insurance Companies for Bad Credit

American Family is the cheapest home insurance company for people with bad credit. A policy with $250K in dwelling coverage costs an average of $3,365 annually. Use the table below to compare rates from different providers. Filter by coverage to check the cheapest for other coverage limits.

Data filtered by:Results filtered by:
Select
Coverage:$250K Dwelling Coverage
American Family$3,365
Nationwide$3,971
State Farm$4,709
Allstate$5,067
Chubb$5,371
Farmers$8,280
Travelers$21,570
Auto-Owners Insurance$43,116
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CREDIT ISN'T THE ONLY FACTOR IN HOME INSURANCE RATES

Credit isn’t the only factor that affects your home insurance rate. Several other factors also determine your premiums:

  • Age of your home and appliances
  • Safety features
  • Type of construction
  • Coverage needs
  • Your age
  • Claims history

How to Get Cheap Homeowners Insurance With Bad Credit

You can reduce your homeowners insurance costs even with a low credit score. These measures will help you find the best rate for home insurance coverage:

  1. 1

    Get multiple quotes to compare

    Because each home insurance company calculates premiums differently, your rates will vary depending on the provider. Compare quotes from multiple insurance providers to find the best deals.

  2. 2

    Use bundling and other discounts

    Bundling your home and auto insurance policies is an excellent way to save significantly on your premiums. Ask prospective providers about other discounts to maximize your savings.

  3. 3

    Compare deductibles

    Increasing your home insurance deductible may help you save on your premium, but be sure you can pay the higher deductible if you have to file a claim.

  4. 4

    Make home changes

    Adding safety features like home security and fire systems or updating your HVAC system could lower your premium.

  5. 5

    Check your coverage

    Review your home insurance coverages to see if you might be overinsured or have coverages you don’t need.

  6. 6

    Limit filing claims

    Small claims can increase your premiums and risk your policy being canceled if you file too many.

  7. 7

    Improve your credit

    To boost your score and lower your premiums, reduce debt, pay bills on time and limit how often you apply for credit.

Compare Home Insurance Quotes With Bad Credit

Getting home insurance with bad credit is possible in all states, though finding cheap homeowners insurance can be challenging. Shop around and compare quotes to find the most affordable options. The calculator below gives accurate estimates based on your needs and profile.

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Rates updated:

Jun 11, 2025

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Credit-Based Insurance Score vs. FICO Score

Lenders use FICO scores to determine if you qualify for credit and at what interest rate. Insurance companies use CBI scores to determine how likely you are to file a claim. While your FICO score is readily available, CBI scores aren't public.

Paying bills on time and reducing your debt and credit inquiries can improve your FICO and CBI scores. Improving these scores increases your chances of getting cheaper insurance premiums and better credit card and loan terms.

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CREDIT SCORES AND INSURANCE RATINGS ARE LINKED

Because many of the same factors determine both FICO and CBI scores, a low FICO score typically means you'll have a low CBI score, and vice versa.

Is It Possible to Get Home Insurance Without a Credit Check?

You can get home insurance without a credit check, but it's only guaranteed in California, Maryland or Massachusetts. Finding companies that skip credit checks in other states is difficult.

While getting a quote without a credit check is challenging, insurers rarely deny coverage because of poor credit. However, expect significantly higher rates if your credit score is low.

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HOME INSURANCE CREDIT CHECKS DON'T HURT YOUR SCORE

A home insurance credit check is a soft credit inquiry. This means it doesn't affect your credit score, even if you get multiple quotes from different companies.

Getting Homeowners Insurance With Bad Credit: Bottom Line

Your credit score is just one factor that determines insurance rates, along with claims history, home age, appliances and other criteria.

MoneyGeek explored how to find the cheapest homeowners insurance for people with low credit scores and how to get coverage without a credit check. While American Family offers the lowest average premium, the most affordable option for you may differ.

Compare Home Insurance Rates

Ensure you're getting the best rate for your home insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Bad Credit Home Insurance: FAQ

To help you find an affordable provider, MoneyGeek answered common questions about getting homeowners insurance with bad credit.

Do all home insurance companies look at your credit score?

Do home insurance companies check your credit score before giving you a quote?

Does a home insurance credit check impact your score?

Best Home Insurance Rates for People With Bad Credit: Our Ratings Methodology

Why Trust MoneyGeek? 

MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. By considering different locations and companies, we aim to give a reliable estimate of what homeowners can expect to pay, showing why comparing rates matters.

Methodology

MoneyGeek evaluated homeowners insurance carriers using insights and premiums from Quadrant Information Services' official databases.

Homeowner Profile

For our analysis, we created a sample homeowner profile with these characteristics:

  • Good credit score (769 to 792)
  • Home built in 2000
  • Wood-frame construction
  • Composite shingle roof

Homeowners Insurance Coverage Details

Unless specified otherwise, we used these coverage limits to collect quotes:

  • $250K in dwelling coverage
  • $125K in personal property coverage
  • $200K in personal liability coverage
  • $1K deductible

We also gathered data for policies with broader coverage to find the best companies for insuring expensive homes, increasing limits to $1M in dwelling coverage, $500K in personal property coverage and $1M in liability coverage.

Home Insurance With Bad Credit: Related Pages

About Mark Fitzpatrick


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Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.


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