How do credit scores affect home insurance rates for Alabamians?
There are many factors that can affect housing affordability for Americans, including mortgage rates, property taxes and the buyer's credit score, among other things.
According to a new study commissioned by InsuranceQuotes, the homebuyer's credit score could have a tremendous effect on homeowner's insurance.
Nationally, a fair (median) credit score could result in 36 percent more for home insurance when compared to rates for buyers who have excellent credit.
According to the study, Alabama's home insurance rates are affected tremendously by poor credit scores. A person with excellent credit will pay an average annual premium of $1,340, while a person with poor credit could pay up to $3,107 per year, a 132 percent difference.
Even having fair versus excellent credit can make a big difference as well.
The average annual premium in Alabama for those with fair credit is $1,926, versus the $1,340 for those with excellent credit scores, a 44 percent difference.
See below how Alabama stacked up against other states
Click on the images to enlarge. Pictures Courtesy of InsuranceQuotes
Translating it to Alabama