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Why do you refer to policyholders as members?
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Is it true that you only insure one house on a block?
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Is it true that Mutual Assurance only insures brick homes
with slate roofs?
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Is it true that I will pay little or nothing per year for
homeowners insurance with Mutual Assurance?
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What makes a perpetual policy different from other insurance
policies?
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Why does Mutual Assurance issue a perpetual policy?
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Does Mutual Assurance Society offer policies outside
of Virginia?
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Why is there a thirty day waiting period to get a policy
with Mutual Assurance?
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Why does the Society inspect every property?
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Can I get my Automobile insurance through Mutual Assurance?
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Will you insure a home that has a hot water heater
located in the attic?
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Why do some members have a facultative reinsurance
charge added to their annual assessment invoice?
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Why do you refer to policyholders as members?
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The Mutual Assurance Society of Virginia is a mutual insurance company. Unlike a
stock insurance company with stockholders, our policyholders are our owner members.
Each member receives an annual report and is eligible to vote at our annual meeting,
either in person or by proxy.
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Is it true that you only insure one house on a block?
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No. We will insure multiple homes on a block. Each home, however, must meet our
underwriting criteria.
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Is it true that Mutual Assurance only insures brick homes with
slate roofs?
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No. We insure brick and frame homes throughout Virginia with various roof types.
Each home, however, must meet our underwriting criteria and construction is a factor
in determining your initial policy premium as well as annual assessments.
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Is it true that I will pay little or nothing per year for
homeowners insurance with Mutual Assurance?
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No. Unlike other insurance companies, Mutual Assurance issues a perpetual homeowners
policy. In the first year of the policy you are charged a policy premium. Then,
at each anniversary you are charged an assessment. Assessments pay for the ongoing
costs of the Society. Annual assessments are based on a percentage of your policy
premium. The Society's Board of Directors sets the percentage annually and the assessment
percentage is the same for all policyholders having the same policy type and exposure
classification. Annual assessments can be from 1% to 200% of the policy premium.
In determining the annual assessment percentage, the Board of Directors considers
such factors as insurance income, reinsurance costs, loss and loss adjustment expenses,
underwriting expenses, investment income and investment performance. For example,
a homeowner paying a $1100 policy premium would pay $220 in a subsequent year having
a 20% assessment. A $100 minimum annual assessment is applicable
to each policy.
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What makes a perpetual policy different from other insurance
policies?
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A perpetual policy is one without expiration. Both parties agree to keep the policy
in-force without an expiration date and so long as the conditions of membership
are satisfied the policy remains in effect, subject however to the cancellation
provisions of the policy and the Society's bylaws. Other insurance policies expire
after a set term, usually one year and are renewed by both parties.
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Why does Mutual Assurance issue a perpetual policy?
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The essence of the Society is a "mutual" commitment of the Society and its member
policyholders, each to the other. It is the expectation of the Society that once
insured, a member will remain insured by the Society. The perpetual policy is a
reflection of that expectation, subject only to the cancellation provisions of the
policy and the current underwriting and eligibility requirements of the Society.
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Does Mutual Assurance Society offer policies outside of
Virginia?
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No. The Mutual Assurance Society of Virginia operates only in the Commonwealth of
Virginia.
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Why is there a thirty day waiting period to get a policy
with Mutual Assurance?
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We require at least a 30 day waiting period for new policies to allow us time to
arrange for and conduct an inspection of the prospective property and its premises.
Many companies will write your policy over the phone and decide later whether or
not they will continue to insure your property. We feel it is in our members' best
interest to make underwriting decisions before coverage is effective.
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Why does the Society inspect every property?
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A physical inspection of the property allows us to properly estimate the amount
of insurance needed to adequately insure the property. In addition, a physical inspection
is the best way to identify existing damage, hazards or deficiencies present on
the premises. After over 200 years of insuring property we are convinced that a
physical inspection is an essential component of sound underwriting principles.
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Can I get my Automobile insurance through Mutual Assurance?
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No. The Mutual Assurance Society of Virginia only provides homeowners insurance
coverage for single family owner occupied properties. As an accommodation to our
homeowner policyholders we also offer dwelling fire, scheduled property and personal
umbrella liability insurance. For more information visit our
Policies and Coverages Page.
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Will you insure a home that has a hot water heater located
in the attic?
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Yes, but only with certain precautions. Hot water heaters have an average life expectancy
of only 10 to 12 years. Thus, it is not a matter of if it will fail, but
rather when it will fail. The potential property damage from the stored hot
water as well as the active cold water supply line is enormous. In addition, hot
water heaters and their supply lines in attics or other unheated areas are exposed
to the equally serious risk of freezing and bursting. We prefer to see hot water
heaters located in garages, basements, or, at worst, in first floor utility rooms
in order to mitigate the property damage that may result from a failed hot water
heater or frozen supply line. Therefore, we require a drip pan and outside drain
line on every hot water heater unless it is installed in an unfinished basement
or garage. If a hot water heater is located in the attic or anywhere else above
a finished living area, we also require the installation of an automatic water supply
shut-off valve.
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Why do some members have a facultative reinsurance charge
added to their annual assessment invoice?
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Reinsurance is insurance the Society purchases to protect itself against large losses
and catastrophic events. Facultative reinsurance allows the Society to insure individual
homes valued higher than what the Society would ordinarily insure. The cost of facultative reinsurance
is charged directly to the individual homeowner as an addition to their annual assessment
and forwarded by the Society to the reinsurer. The Society receives no part of the
facultative reinsurance premium nor does it receive any commission for placing this
reinsurance. Without the use of facultative reinsurance less than 1% of members would
be unable to continue their homeowners insurance with the Society.
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