Perpetual Insurance

Perpetual insurance is a type of homeowner's policy written in such a way as to have no term or expiration date but rather to exist in perpetuity. The policy holder makes a deposit premium with the insurance company for the life of the risk. The deposit is typically ten times larger than the cost of the annual premium for an equivalent policy for one year. If the policy is cancelled, the policy holder is entitled to a full refund of the deposit premium without interest.

Only a limited number of companies in the United States still offer perpetual insurance including Baltimore Equitable, The Contributionship Companies, Mutual Assurance Society of Virginia, and Saucon Mutual Insurance.

Although a relatively rare type of policy, perpetual insurance does offer some advantage as is requires a single deposit premium over the annual premiums charged on regular policies. For most homeowners, however, raising the amount required for the deposit premium is difficult.

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