TAMPA, Fla. — As homeowners across Florida face increasingly tough decisions about higher insurance premiums, a little-known score could be playing a large role in your pricing.
Cristean Stallworth is one of those homeowners asking themselves some tough questions on what to pay.
“Do I pay my homeowner’s insurance, or do I get my medication? Do I pay my homeowner’s insurance, or do I buy something to eat?” she said. “You’re doing a juggling act with your life right now.”
She and her husband purchased their house on Lemon Street in Haines City in 1979. She said they paid about $29,000 for it. Their homeowner's insurance then was less than $600 a year. Now, her insurance will cost more than $5,900, which is $2,700 more than last year. An 84% increase in one year.
“All insurance right now is getting totally out of hand,” Stallworth said.
One factor behind the increase is the change in her homeowner’s insurance score. Although this score is not typically given to homeowners, it sometimes appears in a letter from the insurance company informing you of a change.
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It begs the question, what exactly is an insurance score?
Mark Friedlander, with the Insurance Information Institute, said while it may look similar, it is not your credit score. However, the insurance score ratings are "partially" based on a consumer’s credit information.
“In addition to insurance score, insurers look at other sets of data, including location of home, risk factors for the property, the construction of the property, the age of the property, the history of the homeowner, and have they had claims in the past," Friedlander said.
According to Friedlander, every company has its own score they create to rate their policyholders.
"Those with the higher score have less risk in terms of filing claims,” Friedlander said. “Those with lower scores, based on this actuarial analysis, will have a tendency to have more claims."
Insurance companies say it’s a way to make sure people in low-risk areas aren’t footing the bill for people at a higher risk of filing a claim. But, for homeowners, like Stallworth, it’s all just “too much.”
"It's just crazy the way people are looking to separate you from your money," Stallworth said.
If your rate is increasing, insurance experts say the best thing you can do is shop around to see if there’s a company out there that can offer you cheaper rates.
When debris from a tractor struck their vehicle on I-75, Denise and Mike Brennan were told by a state contractor that "they will take care of it." Now, more than six months later, the Brennans are still $7000 out-of-pocket for repairs and rentals.
