Getting the Right Rate

Dear Dave, I just received notice that my homeowners insurance is about to increase $200 because my FICO score dropped. I recently became debt-free, so I know this score will continue to drop. I'm very confused and angry about this. What should I do? Shelly Dear Shelly, I don't blame you for being mad. This is an absurd thing that's happening in the insurance industry. The majority of low FICO scores are because the people attached to them don't pay their bills or don't pay them on time. But people who don't have any debt - like you and me - have to pay the price because according to their rules no debt equals a low credit score. I would tell them that an increase in my premium of $200 is a strong indicator that I'm going to find another insurance company - AND that they can go jump in the lake! I think I'd also get in touch with an independent insurance broker, and let them try to make a market for you. Do everything you can, Shelly, to keep from giving your business to a company like this! - Dave
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