Question by Gootman: Can a home owner insurance company refuse to cover a client because of bad credit in Florida?
I lost a reasonably good paying job and because I now have bad credit, I am having great difficulty in finding a Home owner’s insurance company to carry me because my original company is leaving Florida.
Answer by mbrcatz17
Honey, likely your problem isn’t your credit, it’s your location.
NO ONE is writing new policies in Florida right now. You’ll have to go to an independent agent, and end up with Citizens – they are the ONLY game in town. Florida windstorm for the wind, NFIP for the flood, Citizens for the rest.
There isn’t ANY competition in Florida – you could have an 800 credit score, and it wouldn’t change anything.
Your original company isn’t the ONLY one leaving Florida – the very few companies that aren’t flat out leaving FL, flat out aren’t writing ANY new policies.
Yes, it’s going to cost you an arm and a leg. Yes, you’ll have to pay your annual premium up front. Yes, it’s going to be like this for the next few YEARS, at least. And yes, the prices for Citizens, Flood, and Wind are going to skyrocket over the next few years, because Citizens is VASTLY underfunded ($ 80B in funding, including lines of credit, $ 400B in insured properties – if they were a REAL company, any state would put them in receivership for not being financially solvent).
Meanwhile take the next few years and knock yourself out to get the credit situation fixed – because if/when the insurance situation gets repaired in FL, THEN you’re credit score will be an issue.
But to answer your direct question, yes, in ANY state except California, an insurance company can refuse to write your homeowners policy due to low credit score.
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