“It really excited me because we’ve been with this insurance company for 19 years – 19 years and we’ve never made a claim on the car or the house,” Jo Waterhouse told CTV News Toronto. Waterhouse said she and her husband David had been married for 41 years when she died after a long illness. After he died, she said she felt she had to get her financial affairs in order. “I told everyone about his death, the government, the financial institutions and I thought about telling my insurance broker,” she said. But not long after she contacted her insurance company, she said she was told her home insurance premiums would increase by $144 a year and that she would have to pay a prorated fee of $47.52 immediately. The reason? Her husband’s credit score was slightly better than hers, she said. “I can’t believe I’m being accused of this,” he said. “Especially when you’re grieving the loss of your soul mate and it sticks and it’s not necessarily the money, it’s the beginning.” Your credit score is an important financial indicator used primarily to tell lenders whether you’re considered a good credit risk, but increasingly, insurance companies are using credit information to also determine how much to charge for home insurance. “Many insurance companies will use credit scores to determine your home insurance premiums,” Anne Marie Thomas, Director of Consumer and Industry Relations, with the Insurance Bureau of Canada (IBC), told CTV News Toronto. The IBC said a code of conduct was adopted in 2021 to allow insurers to use credit information to set home insurance rates, and about 85 percent of the insurer market has agreed to the code. It’s another reason to make sure your credit history and credit score stay in good shape. “It’s always a good idea to make sure your credit score is good and check your credit score about once a year to make sure there are no errors,” Thomas said. Waterhouse is insured by Wawanesa Mutual Insurance Company. Wawanesa senior communications specialist Brad Hartle told CTV News in a statement: “We extend our sincere condolences to Ms. Waterhouse on her loss. After speaking with her broker, we have issued Ms Waterhouse a refund for the additional premium charged. In such cases, it is not our intention to increase premiums. We will also be contacting Mrs Waterhouse directly.’ Waterhouse said she now plans to shop around and check insurance quotes with other companies. Not all insurance companies use credit scores to determine how much your home insurance premiums should be, so if you’re unsure about the policy, ask your insurance company to find out. While insurance companies can use credit scores for home insurance purposes, they require your permission first, and if you refuse, you could be charged a higher insurance rate than if you agreed to a credit check. Insurance companies are not allowed to use credit scores to calculate how much you pay for car insurance.
