Founded in 1794
Exclusive to Virginia Homeowners
Member owned, not Shareholder owned
One-time
Premium
Stable Annual Assessments
Savings that Grow Over Time
What is a Perpetual Policy with Mutual Assurance?
Put simply, a perpetual policy is just what the name implies - it is a policy that 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.
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Close up of an antique clock hanging in the Mutual Assurance office. It has has stood sentry in all of the company's locations since the 1800s.
Questions You May Be Asking
A perpetual policy works differently than traditional homeowners insurance, so it's natural to have questions. Here are the answers to the ones we hear most often.
Why is the first year premium higher?
It's one of the first questions we hear—and it's what makes our perpetual policy different.
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Unlike traditional insurance companies that collect a new premium every year, Mutual Assurance collects a larger one-time premium when you first purchase your perpetual policy.
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This initial premium helps build the financial strength of our mutual company. As a member, you're not simply paying for one year's insurance—you're becoming part of a company owned by its members rather than outside shareholders. Your initial premium contributes to the reserves we maintain and invest responsibly to help protect today's members and future generations of Virginia homeowners.
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Because those reserves continue to support the company over time, members pay only an annual assessment after the initial premium. This assessment is only a fraction of what a traditional annual premium would be, creating meaningful savings over the life of the policy.
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What are Annual Assessments?
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When determining the annual assessment, the Board considers factors such as:
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Claims paid during the year
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Reinsurance costs
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Inflation and the rising cost of construction labor and building materials
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The cost to rebuild homes in today's market
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Administrative and operating expenses
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Investment performance, which helps support the Society's long-term financial strength
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The policy premium, which serves as the basis for calculating your assessment, is also reviewed periodically to reflect changes in replacement costs and the overall insurance environment. Factors such as inflation, construction costs, catastrophic weather trends, and reinsurance costs can all influence premium levels, just as they do throughout the insurance industry.
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Despite these economic pressures, Mutual Assurance's assessment rate has remained remarkably stable over the years. In fact, it has generally remained within a narrow range for decades, helping members enjoy predictable costs and significant savings over the life of their policy.
Annual assessments are how our members help keep the Society strong while sharing in the long-term benefits of our unique mutual model.
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After paying the one-time premium when your policy begins, you'll pay an annual assessment each year on your policy anniversary. The assessment is a percentage of your policy's premium and is typically only a fraction of what homeowners pay for a traditional annual insurance premium.
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Unlike stock insurance companies, Mutual Assurance is owned by its members. Each year, the assessment rate is established by our Board of Directors, who are themselves members of the Society and are elected by the membership. Their responsibility is to balance today's financial needs with the long-term strength and stability of the Society.
Is a Perpetual Policy Right for Your Home?
If you're looking for the lowest price today, a perpetual policy may not seem like the obvious choice. But if you're looking for long-term value, stability, and a company committed to protecting Virginia homes for generations, it may be exactly what you've been searching for.
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​A perpetual policy may be a great fit if you:
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You plan to own your home for 3 or more years.
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You value long-term savings over short-term discounts.
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You appreciate working with a Virginia-based company.
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You prefer a member-owned company instead of one driven by shareholders.
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You want a relationship, not just another policy renewal.
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Does your home qualify?
Every home is unique, which is why we take the time to evaluate each one individually.
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Our focus is on the home itself—its condition, construction, location, and overall insurability. As part of the qualification process, one of our representatives will inspect your home, inside and out, to ensure it meets our underwriting standards and is a good fit for our mutual community.
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Many homes qualify with little or no changes, while others may simply require a few improvements before coverage begins. In some cases, these improvements may be recommended before a policy is issued or made a condition of coverage. The recommendations are designed to help protect your home, strengthen the Society, and ensure every member shares in a community of responsibly maintained homes.
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If you're wondering whether your home qualifies, we'd be happy to take a look. The inspection is simply the first step in determining whether a perpetual policy is the right fit for your home.​
How long does the process take?
Unlike many insurance companies that rely primarily on online applications, we take the time to personally evaluate every home we insure. This includes reviewing your application, scheduling a home inspection, and completing our underwriting process to ensure your home is a good fit for our mutual community.
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Because every home and every market is different, the timeline can vary. Most applications are completed within a week or two, although in some busier markets the process may take up to 30 days, depending on inspection scheduling and underwriting volume.​​​​
If you have a specific closing date or need coverage by a certain time, let us know. We'll work with you to keep the process moving and communicate with you every step of the way.
Let's Talk
Every home is different.
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Every homeowner has questions.
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Whether you're ready to request an estimate or simply want to better understand how a perpetual policy works, our Underwriting Services team is here to help.​