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Perpetual Insurance

Perpetual insurance is a type of insurance policy which covers homeowners and has no date of expiration. From the date of signing the contract the policy exists for perpetuity. This type of insurance functions in the following way: the insured party provides an amount of money as partial payment, called deposit premium, which functions as safekeeping, paying for the insurance for the life of the risk.

Similarly to a bank, the insurance agency earns enough profit on the deposit to provide you coverage in case property damage occurs. The only difference is that you won't receive interest income but insurance coverage.
Many people don’t buy perpetual insurance because they simply don’t know it exits or have misconceptions about it. Indeed, it is not a widely known option, and there are only a few companies specialized in this, but if you are insistent enough you can find some really good offers.
Before providing you perpetual insurance policy, companies will surely inspect your property, to see if there are any problems that could lead to an instant claim. You don't have to worry about that as this is their common procedure. Thus try to fix everything in and around your house before applying for perpetual coverage. A healthy, continuously maintained home always creates a positive image in the eyes of the insurers. It is also important to have a clean record that is a claim-free history. Just another recommendation: install interior sprinkler systems, fire alarm, as well as burglar alarm systems, and before buying your property also check out if there is a fire department or a fire hydrant in the neighborhood.

You may think that perpetual insurance is a risky investment as basically you deposit some money, but you can get into a hard financial situation very soon when you'd need that money. In case you want to cancel the policy the company has to return the deposit premium in no more than a day, but on the condition to switch to another type of coverage. They give you the money back regardless the claims. When for example your home is completely destroyed the costs of rebuilding are fully covered, and you will get back your entire deposit besides. Because there are no annual rates, and upon cancellation you get back your entire deposited money, this type of policy has more advantages than a traditional coverage.

Another benefit of perpetual insurance is that its cost never changes. Most insurance companies offer traditional homeowner insurance for which annual rates must be paid. These rates increase of course, and you always have to pay the increased premiums accordingly. In addition you have to pay deductibles each time you hand in a claim. With perpetual coverage you can have a better perspective: the cost for perpetual coverage that is set at the initial purchase will never increase during the life of the policy. Another good thing lies in the fact that Perpetual Homeowner's is a flexible contract: should you need additional coverage, you will receive at exactly the same rate that you initially paid.

You will need additional coverage if the value of your property and its contents has risen. Therefore, the insurer revises the policy at the end of each year to see if additional coverage is needed, and provides you suggestions, recommendations regarding the forthcoming changes. Insurers annually re-evaluate the sturcture of your home to see whether the current situations brings about changes in the costs of total rebuilding. Accordingly, they provide you advices, thus you won't have a static coverage, but a policy which is continuously tailored to your needs.

Before selecting the company with wich you plan to sign contract, ask for its quotes to see if the services offered satisfy your needs. Also check out what are the items covered. Perpetual policy does not only protect your home, but also your businesses, personal posessions in the house and outbuildings as well.

A good policy should offer protection in case of damage to your home's structure, should cover the loss or damage of your personal belongings as well as medical payments in case of acceidental bodly injuries and should cover the additional living expenses in case you temporarily become homeless in event of an insured disaster. Perpetual insurance contains all these traditional elements, but it is saves you from the annual rates, and it is the only insurance which pays you back the entire deposit whenever you need to cancel your policy, regardless of claims.