Home Insurance for People with Bad Credit

In most states, insurers use your credit-based insurance (CBI) score to determine your home insurance rates. If you have bad credit, you may pay more for coverage. For example, the average annual cost of home insurance is $3,467 for a policy with $250,000 in dwelling coverage, while someone with bad credit pays about $7,136 — or 105% more.

Insurers often see homeowners with poor credit as higher risk since credit history can hint at how likely someone is to file a claim. Instead of denying coverage, they tend to raise premiums to offset that risk.

When you apply for a home insurance policy, insurers conduct a “soft” credit check to get your credit report, which is used to create an individual credit-based insurance (CBI) score. While models used to calculate someone’s CBI vary by insurance company and are proprietary, some known factors affect it.

AIG Insurance offers the cheapest home insurance for people with bad credit, averaging $1,730 per year for a policy with $250,000 in dwelling coverage. Use the table below to compare rates from different providers. Filter by coverage to check the cheapest for other coverage limits.

You can get home insurance even with bad credit, but finding cheap homeowners insurance may take more effort. Compare quotes from multiple companies to identify the best rates. Use the calculator below to see estimates based on your profile.

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 AIG Insurance offers the lowest average premium, the most affordable option for you may differ depending on your location and profile.

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

MoneyGeek analyzed homeowners insurance quotes from multiple providers across the U.S. using data from Quadrant Information Services' official databases. Our analysis examines how credit scores impact rates by comparing quotes for homeowners with poor credit (300 to 579) against those with good credit (769 to 792). We used a sample profile with a wood-frame home built in 2000 with a composite shingle roof, $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage and a $1,000 deductible.

We gathered quotes across multiple credit tiers and coverage scenarios to show the real cost difference bad credit creates. By comparing rates across locations and credit profiles, we help homeowners with poor credit understand what to expect and identify insurers offering the most competitive rates despite credit challenges.