Can You Get Home Insurance With Bad Credit in McDonough & Henry County?

Yes, you can get homeowners insurance in Georgia with bad credit or thin credit. Credit can affect your price and which companies offer you a policy, but it isn't supposed to be the only thing that decides. If you're buying a home in McDonough, Stockbridge, Hampton or Locust Grove, or you just got a renewal with a big increase, here's what to know.

How credit affects home insurance in Georgia

Georgia allows insurance companies to use a credit-based insurance score when they price and approve home and auto policies. It's built from your credit report (payment history, balances, how long you've had credit) but it isn't the same number as the score a lender sees.

Georgia law also puts guardrails on it. Under O.C.G.A. § 33-24-91:

• An insurer can't deny, cancel or non-renew a personal policy based only on credit information. It has to consider other underwriting factors too.
• If your credit has improved, you can ask your insurer at annual renewal to re-rate your policy using a current credit report.

Insurers also have to tell you if they use credit, and send you a notice explaining the main reasons if credit led to a higher price or a denial. If you think an insurer didn't follow the rules, the Georgia Office of the Commissioner of Insurance takes consumer questions at (800) 656-2298.

Other things that matter as much as credit

Credit is one factor among many. Insurers also look closely at:

• The age and condition of your roof. This is often one of the biggest factors in Georgia.
• Past claims on you or the house, usually from the last several years.
• The home itself: age, construction, square footage and the cost to rebuild it.
• Location details, like distance to a fire station and fire hydrant.
• Updates to electrical, plumbing and heating systems.

A newer roof and a clean claims history can do a lot to offset a low credit score.

If you're buying a home

Your mortgage lender will require proof of homeowners insurance before closing, so don't leave it until the last week. A few tips:

• Start quotes as soon as your offer is accepted. Ask the seller or your agent for the roof's age and any recent updates.
• Get the inspection report to your insurance agent. It answers many of the questions insurers ask.
• Ask about bundling your home and auto policies. Many companies give a discount for having both.
• Pick a deductible you could actually pay if something happened next month.

If your renewal went up

• Ask your current insurer why. If credit played a part, you're entitled to a notice explaining the main reasons.
• If your credit has improved, ask them to re-rate the policy at renewal.
• Compare other companies. Some weigh credit much less heavily than others.
• Review your coverage with an agent. Sometimes a higher deductible or a change in optional coverage brings the price down without giving up the protection you need.

Renting? Renters insurance is easier

If you rent in Henry County, renters insurance is usually far less expensive than homeowners insurance and less affected by credit. It covers your belongings and your personal liability, and many landlords require it. It can also qualify you for a discount on your car insurance when you bundle.

Getting a quote in Henry County

An agency that shops several insurance companies can compare how each one treats your credit, your roof and your claims history in one conversation instead of you filling out a dozen forms. Have your address, the year the home was built, the roof's age, any past claims and your current policy's declarations page ready if you have one.

If your car insurance is also affected by credit, see our guide to car insurance in Georgia with bad credit or no credit.

The bottom line

Bad credit can make home insurance cost more, but it shouldn't keep you from getting covered. Georgia law limits how insurers use credit, you can ask for a re-rate when your credit improves, and comparing several companies usually turns up better options than the first quote you get.