The CBC thinks Home Insurance is a Hot Topic too!

Imagine my shock when the CBC’s anchor, Peter Mansbridge, led last night’s news with a story about skyrocketing home insurance rates. If you’re a Canadian homeowner, you may want to tune in to Marketplace tonight with Wendy Mesley, or set the PVR if you’ve got one.

Here’s the skinny: according to the news report last night, and the trailer on the CBCs website, some insurance companies are not only looking at your home’s replacement value, the location, age, etc, they’re also checking out your credit score. Why? According to the segment aired on The National last night, the insurance companies are suggesting that those with poor credit, are less likely to do necessary home repairs and maintenance, which spell greater risk for insurance companies.

One gentleman was featured who had remarked that his home insurance had almost doubled in the last year. What had chanaged? He’d claimed bankruptcy.

If this is indeed the case, this will certainly have an impact on new immigrants, single parents, the unemployed and underemployed. If you go to the link above and check out the video, you may want to check out the comments. Some of the comments, likely from those familiar or involved with the insurance company, are noting that most of us likely sign a waiver that allows the insurance company to collect information for the purposes of assessing the application, including credit information.

This has me wondering if my increase is really due to that increased storm activity I was told about. You can be assured I’ll be calling my insurance company again today. Although I’ve already sent them a cheque for that increase. I’ve also already shopped around and found that my existing insurance company still offered me the best rate.

Maybe the thing to do is check my credit score. It’s been over two years since I checked myself out. Honestly, I really don’t think my credit score is bad. The bills are always paid on time. There’s no co-applicant on my home insurance though, so perhaps they think I’m a high risk. They don’t know that I’m totally committed to keeping my home in good repair and building up a home maintenance fund and an emergency fund.

This news is even more incentive to get out and stay out of debt. Debt costs are much higher than just the interest that accumulates. Perhaps I should thank the insurance companies for making me a bit cranky this morning, and making me even more convicted to stay on this course I’ve planned for my family. Game on.

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