Concerned that her homeowner’s premium was too high, Karlee Roth, a nurse living in Tavistock, Ont., discussed her frustrations with her insurance agent in Stratford.
Rick Orr, the broker who heads Orr Insurance, says that about a decade ago, insurance companies determined that “credit scores were an excellent indicator of risk. The home insurance files with the most losses were the ones with low credit scores. If people weren’t managing their money properly, they probably also were not replacing the roof when it was time and doing other preventive maintenance. They began providing discounts based on credit scores.
It was a teachable moment. Knowing the difference between soft and hard credit checks is important for all consumers, because they will encounter these checks throughout their lives. By contrast, a soft credit check gives the requester less information than a hard check and doesn’t affect your credit rating. The results of a soft check are only available to you and the party who made the inquiry. Landlords often conduct them and insurance companies use them in determining your premiums.
Anne-Marie Thomas, director of consumer and industry relations for the Insurance Bureau of Canada , notes that home insurers are required to follow the Code of Conduct for Insurers’ Use of Credit Information, approved in 2010 which “requires insurers to obtain a customer’s informed and express consent prior to collecting credit information.”
“In principle, as a consumer organization, we believe there always needs to be clarity up front about what a consumer agrees to, and the onus should be on the seller to make sure they understand,” Whitehurst said.
Why? If I pay on time and always current then that should save me money.
What’s next vax proof
Clickbait for subscriptions so we'll comment only on the title..... anyway....... Why would anyone be against more overreach and control I wonder?
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