Around the Industry: Credit Scores Don’t Just Impact Rates; They Also Affect Home Insurance Pricing (July 2026)
Reading time • 1 min
By Matic
You’re used to educating buyers on how credit impacts their mortgage rates, but find out how their score also affects their home insurance premiums. In this edition, we’re also covering where the price of premiums outpaces property taxes, the verdict on 2025 claims, and regional news on coastal areas, Illinois, and California.
Why your buyers receive different insurance quotes
The physical condition and location of a buyer’s home isn’t the only factor impacting their insurance quote. Individual risk is just as important to insurers. They look at claims history and credit score to gauge how likely a homeowner is to submit a future claim. Research shows that claims are more likely with individuals who have lower credit scores.
Homeowners in some states pay more for insurance than property taxes
It’s important for borrowers to understand the total cost of homeownership, particularly home insurance premiums and property taxes that are baked into their monthly mortgage payments. On average, American homeowners spend $200 on insurance and $311 on property taxes each month. But there are 15 states where insurance actually costs more. The top three? Tennessee, Alabama, and Colorado.
Disaster severity levels rise in 2025 but overall claims drop
A new home insurance report revealed a mixed bag of industry trends based on 2025 data. Peril severity levels increased, largely due to the Los Angeles wildfires. But there was some good news as well. The total number of claims decreased, as did loss cost.
Worst U.S. counties to insure, above-average premium prices in Illinois, and a surprise insurer showing up on California mortgage applications
- Coastal counties are the most difficult to insure: A new report identified the riskiest counties for home insurance. Coastal areas in Florida, North Carolina, and Louisiana top the list.
- Illinois insurance sticker shock: Increasing extreme weather throughout the state have caused premium prices to jump 14% above the national average.
- California’s insurer of last resort remains popular for buyers: Nearly 6% of California mortgage applicants list the state’s FAIR Plan as their primary insurer.
