Property owners in the district pay almost 3 times more for their coverage if they don’t have good credit.
When you have poor credit, it can feel as though everything in your life is more expensive, and according to a recent data analysis, when it comes to homeowners insurance policies in Washington D.C., that is absolutely the case.
D.C. is one of the most expensive places in the country to have poor credit in terms of home insurance premiums.
According to an InsuranceQuotes.com survey, homeowners insurance in Washington D.C. is about 185 percent more expensive for people who have poor credit when compared to the rates that are paid by people who have excellent credit. This represents the second most expensive credit-based gap in the country. The national average is currently a difference of 100 percent between the premiums paid by those with poor and excellent credit.
Even people with average credit scores are paying the second highest homeowners insurance rates.
In Washington D.C., it isn’t just those with poor credit who are paying a lot more for their home insurance policies. When compared to the rest of the country, people who have median credit scores in D.C. are also paying the second highest premiums in the nation when compared to people who have excellent credit.
The survey revealed that in D.C., people with median credit scores paid 61 percent more than those with excellent credit. That said, in the rest of the country, the average is 32 percent.
According to Laura Adams, from the firm that conducted the study, in 29 states (as well as D.C.) the difference has actually risen over the past year. Equally, the difference fell in 17 states. She explained that “It’s more important than ever for people to maintain a solid credit rating by paying their bills on time, keeping their balances low and correcting errors on their credit reports.”
For many people, this may be easier said than done, but it does show that when it comes to keeping homeowners insurance rates as low as possible, making every effort possible to maintain good credit can make a considerable difference when that monthly bill comes along.