Perpetual Policy


What is a Perpetual Policy with Mutual Assurance?

A perpetual policy never expires. As long as membership conditions are satisfied, the policy remains in effect subject only to the eligibility requirements of the Society and the policy’s cancellation provisions. Other insurance policies expire after a set term, usually one year, and are renewed for an additional premium.

How does it work?

Members of Mutual Assurance Society are charged a one-time premium for the life of the policy at the time of purchase.  Additional premiums are charged only if a new coverage is added to the policy, such as Equipment Breakdown or Service Line Coverage. Since the premium covers the life of the policy, it is often a little more than what you would pay for an annual homeowner insurance policy that expires annually.  Members are then only charged the annual assessment – a percentage of the policy premium – which covers the ongoing costs of the Society.  These assessments are much less than what you would pay for other homeowner insurance policies.

For example, with a 20% assessment, a homeowner paying a policy premium of $1000 in the first year would pay only $200 in our assessment structure.  With other insurance companies, you would continue to pay the $1000 premium to renew your policy.

The Mutual Assurance Board of Directors annually sets the assessment, ranging from 1% to 200% of the policy premium, based on claim costs, administrative expenses, and investment performance.  For the past ten years, annual assessments have ranged from 15% to 25% of the policy premium.  The result – our members commonly spend thousands less for homeowner coverage over the lifetime of their policy.

The benefits of a Mutual

Mutual Assurance Society of Virginia is a mutual insurance company.  Unlike a stock insurance company with stockholders, our policyholders are owner-members. Each member receives an annual report and is eligible to vote at our annual meeting, either in person or by proxy.

At Mutual Assurance, when we work together with our members to keep claims and operating expenses low, our members benefit from lower annual assessments. It is a partnership that has grown and thrived for over 227 years.

Does your home qualify?

Not every home in Virginia qualifies for our insurance. Location, home condition, municipal water sources, fire station and hydrant proximity, and much more are considered before membership can be offered. We do this to make sure each member’s risk is equal and mutually beneficial.

We invite you to complete our pre-qualification form to see if your home meets our membership requirements. A member of our team will then reach out to start a conversation.

We look forward to meeting you.