There are many factors that affect the amount of deposit required for each individual homeowner. amount of coverage on the dwelling amount of coverage on your personal property size of deductible you choose credit for a burglar alarm system, if applicable optional riders for your valuable items proximity of your home to fire hydrants or stations As you can see, a homeowners policy can be quite complex. Most of the time, our agents can give you a good idea of what a perpetual policy will cost by using your present policy as a guide. In this way, you will have a clearer understanding of how our policy compares with what you already have, and we will have an idea of the coverage that you will need from us. Once you decide that our policy and our "deposit" are acceptable to you, one of our agents will set up an appointment to see your home. Using a nationally recognized replacement cost estimating software, we will determine approximately what it will cost to rebuild your home. This is the basis for your Dwelling Coverage amount. Then, after discussing your present insurance needs, we will determine the final cost for your policy. One important note before you read further. Future increases in coverage for this policy will be based on your original rate . Once this specific rate has been established for your policy, it is written on the declarations page with the summary of your policy coverages, and we guarantee that your rate will not go up for future additions to this policy --even if we increase the rate for new customers in the future! Now that you think of homeowner's insurance as an investment, perpetual homeowner's makes annual payments seem downright ridiculous." Let's pretend that today your $250,000 home carries a premium of $750. What amount of money do you need to invest to provide enough to pay that premium? The “deposit” for a Perpetual Homeowners policy is fully refundable upon request, very safe, and extremely liquid. So it is most closely compared to a Treasury Bond, CD or tax-free bonds. The bonds or CD provides interest income; the Perpetual Homeowners policy provides insurance coverage. Of course, one would hope that you have items in your portfolio that provide a much higher return than these might, but you probably wouldn't be using that capital to pay for this product. If you could count on 4% return from a municipal bond (tax-free), you would need $18,750 to provide enough income to protect the capital and pay the premium. At 5%, you would need $15,000. Taken anther way: If the deposit for your homeowners policy were $10,500 and you replaced your current premium policy with the perpetual policy, the “interest” on that money is the $750 that you would have paid in premium but now don’t. That’s a 7% return on a very stable, conservative and liquid investment. Not bad! If you look at our policy as a good, conservative investment that might function as a cornerstone of a broadly diversified portfolio, that rate of return is quite high. If this quick comparison looks promising, consider another built in advantage to the Perpetual Homeowners Policy. The cost for Perpetual Homeowner's that is set at the initial purchase will not increase during the life of the policy. Additional coverage, whether it's bought one year from now or ten years later, will be at the same rate that you initially paid. Will your present homeowner's insurance company promise you this? No increase in rates! If it's advantageous to buy now, the savings will only grow as each year passes. If I don't have $10,500 to buy the Perpetual Homeowners Policy, I guess this approach is not available to me. Wrong! We have recently made available an extended payment plan, so everyone who wants to can benefit from the Perpetual approach to Homeowners Insurance. The best news is that it's an extremely cost effective plan. Let’s take a look: $10,500 single one time payment needed. 1/3 down at the effective date of the policy. And 11 equal monthly payments after that. The 3 1/2% extra charge in this case is $368. Your down payment would be $3,630 with 11 equal monthly payments of $658. The choice is yours. Many policyholders prefer to make the single payment all at one time, and some find the extended payment feature to their benefit. There are also other payment plans available.