Homeowners with low credit scores pay, on average, nearly $2,000 more annually for home insurance, according to a new report by the Consumer Federation of America (CFA) and the Climate & Community Institute (CCI).

The report weighs the impact of credit pricing against pricing based on local disaster risks, like hurricanes or hailstorms. Even when all other factors are the same among prospective policy buyers, those with poor or average credit scores end up paying much higher premiums, the report authors say.

Homeowners with FICO credit scores of 630 or lower pay, on average, $1,996 more per year than property owners with high credit scores, the report says. And those with average credit scores typically pay $792 more annually.

Where credit-based scoring hurts consumers the most

The CFA

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