How is a Credit-Based Insurance Score different from a FICO score?

Answer: A Credit-Based Insurance Score (CBIS) is a numerical representation of your creditworthiness specifically designed for insurance purposes. Unlike the FICO score used by lenders, it may consider factors such as claim history, property and payment data, in addition to credit history.

Why do insurers use a Credit-Based Insurance Score?

Answer: Insurers use CBIS to predict the likelihood of policyholders filing insurance claims. By assessing risk more accurately, they can adjust premiums to better reflect each individual's risk profile and minimize potential losses.

What factors drive a higher or lower Credit-Based Insurance Score?

Answer: Factors affecting CBIS include your credit history (payment history, debt level, credit age), public records (bankruptcies, foreclosures, liens), and inquiries (insurance applications, loan applications). Unlike FICO scores, it may also consider factors like insurance claim history and property-specific data.

How does the use of Credit-Based Insurance Scores vary by state?

Answer: The use of CBIS is regulated differently in each state. While some states, such as California and Massachusetts, ban or restrict the use of credit information for insurance pricing, others like Hawaii, Maryland, Michigan, and Washington allow its usage with specific guidelines. For more details on your state's rules, please refer to our state caveats section below.

What are my consumer rights regarding Credit-Based Insurance Score use?

Answer: As a consumer, you have the right to know if your insurance provider uses credit information in their pricing decisions. You also have the right to receive an adverse action notice if your application is denied or your premium increased due to a low CBIS. In addition, you can request a copy of your CBIS and dispute any errors found on it.

Can my Credit-Based Insurance Score be updated during policy renewal?

Answer: Yes, insurers may re-score your credit profile during policy renewals to reassess risk and potentially adjust premiums accordingly. However, the specifics of when and how often a re-score can occur may vary by state and insurance provider. Consult with your insurance company for more details on their policies.

finance

Credit Score's Influence on Homeowners Insurance Premiums:

Justin Reynolds

August 23, 2026 3 min read

Credit Score Homeowners Insurance Premiums Consumer Rights Insurance Scoring

Key Takeaways

Credit-Based Insurance Scores (CBIS) are used by insurers to assess risk and set rates
A higher CBIS generally leads to lower premiums
State rules vary on the use of credit scores for insurance pricing

Your credit score plays a significant role in determining your homeowners insurance rates. Insurers use a specialized type of score called a Credit-Based Insurance Score (CBIS), which differs from the familiar FICO score.

Credit-Based Insurance Score vs FICO

While similar, CBIS and FICO scores differ in how they are calculated. CBIS considers factors such as payment history, outstanding debt, and new credit inquiries that may impact your insurance premiums.

Why Insurers Use Credit-Based Insurance Scores

Insurers use CBIS to help assess risk and set rates. A higher score generally indicates a lower risk, leading to lower premiums.

Credit Score Range Table

Compare your credit score to our table to see how it might impact your homeowners insurance premiums.

Credit Score Range	Illustrative Impact on a $1,800/yr Baseline Premium
Excellent (800-850)	Typically saves $270-$360/year (15-20% less) versus the fair-credit baseline.
Very Good (740-799)	Typically saves $180-$220/year (10-12% less) versus the fair-credit baseline.
Good (670-739)	Typical rates are close to the fair-credit baseline.
Fair (580-669)	Baseline used for comparison in this table.
Poor/Bad (300-579)	Typically costs $400-$700/year more (22-39% higher) versus the fair-credit baseline.

Illustrative Annual Premium Examples

Here are examples of how a change in your credit score can affect your homeowners insurance premiums in various states:

California: credit scoring for homeowners insurance pricing is restricted, so a homeowner with Good credit and one with Excellent credit would both pay close to the $1,800/year baseline -- credit score has little effect here.

Texas: credit scoring is allowed, so the same homeowner might pay closer to $1,635/year with Excellent credit, or $2,200/year or more with Poor credit -- a real difference driven mostly by the credit tier.

State Rules

Different states have different rules regarding the use of credit scores in determining homeowners insurance rates. Check your state's specific regulations for more information.

California and Massachusetts ban or restrict the use of credit information in homeowners insurance pricing. Hawaii, Maryland, Michigan, and Washington allow its use but with specific guidelines and restrictions. Most other states allow credit-based insurance scoring with fewer restrictions -- check your own state's insurance department for the current rule.

Consumer Rights and Adverse Action Notices

As a consumer, you have rights when it comes to credit-based insurance scoring. Learn about adverse action notices and your options if your insurance premium is affected by your credit score.

FAQs

Find answers to common questions about credit scores and homeowners insurance, including how CBIS compares to FICO, the impact on rates, and consumer rights.

Get a Homeowners Insurance Quote Today

Don't wait! Get a homeowners insurance quote today to find out how your credit score affects your premiums. Compare quotes from multiple providers to ensure you get the best deal.

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