What is Perpetual Home Insurance?

Posted in Home Insurance

April 16th, 2009

If you’re a home owner, then you know how critical it is for you to get home insurance. If you didn’t have it, and your house burned down, you would see one of your life’s biggest investments go up in flames and be left with nothing but bills and heartache. One type of policy that many home owner’s find cost-effective is perpetual home insurance. Perpetual home insurance is coverage that is paid for by the home owner all at once, in a single lump sum. The insurance company will then invest that money, and any and all funds needed to pay for the repairs to a home would come from that investment fund.

Perpetual Home Insurance

Perpetual home insurance has been around for a very long time, but most people are unaware of it, and simply pay their yearly premium. Granted, the initial deposit for a perpetual home insurance policy is rather steep, so most people can’t afford it. But if you have $5,000 that you can put towards it, a perpetual home insurance policy will make financial sense because it will invariably save you money in the long run. Insurance premiums go up, and after several years you’ve spent more on your home insurance than if you had gotten perpetual home insurance in the first place.

Perpetual Home Insurance Gives Options

Another big selling point for perpetual home insurance is that you can get it back whenever you want it. If you put down $5,000 when you first buy your home, then add on a few thousand dollars here and there as the value of your home appreciates over the years, you can get it all back when you and your husband sell the home, and decide to move into a rental apartment. The money you get back from your perpetual home insurance policy will most likely come in very handy. Compare perpetual home insurance with conventional home insurance premiums – that’s money you’ll never see again.

To learn more about perpetual home insurance, be sure to check in with a home insurance specialist. He or she can walk you through the pros and cons of perpetual home insurance to determine whether it’s the right policy choice for you.