Do you currently hold a policy with the Deerfield Beach-based People’s Trust Insurance Co. or are you considering signing up for one of their policies? If so, you may wish to double-check your credit. Per a recent Sun Sentinel article and plans filed with Florida regulators, the insurer intends to begin checking credit on all new customers as well as those that are up for renewal. Should everything go according to plan, credit checks will kick off beginning November 2 for new customers while credit checks for renewals will go into effect in January.
According to the Sun-Sentinel article, People’s Trust Insurance Co. is implementing a credit-based insurance scoring with the goal to “better understand and assess…risk.” Customers that have fallen behind on payments or have not paid them will receive surcharges while customers that have consistently paid on time will receive discounts. These fees and discounts will vary based on the information in a customer’s credit check.
Insurers that use credit scoring to determine prices believe homeowners with poor scores have greater odds of not maintaining their home and may, therefore, be more inclined to file a claim. Interestingly, last resort insurer Citizens Property Insurance Corp. is among the insurance companies that do not currently require credit checks.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.