Does anyone on this forum have experience with perpetual insurance for insuring their house?
I recently received an invitation in the mail to consider Baltimore Equitable Insurance, which sells perpetual insurance to house owners in MD and PA.
I had to google it to learn more:
Perpetual insurance - Wikipedia, the free encyclopedia
Currently I am paying $355 a year for a conventional house insurance policy, which covers the building up to $238,000. The perpetual insurance will require a refundable deposit of $11,000 to get a similar coverage for my house. The deposit can be received back if I cancel the policy, considering that the insurer is still in business. $11K sitting in a bank savings account generates 0.9% at the current rate - $99 per year minus taxes. It looks like I can save at least $254 per year in exchange for the additional risk of losing the deposit if the insurer goes bankrupt.
I can switch back to the conventional coverage and get my deposit back if bank rates get significantly higher, I need cash to cover unexpected expenses or if the insurer loses its current A+ insurance company rating.
Am I missing anything?
I recently received an invitation in the mail to consider Baltimore Equitable Insurance, which sells perpetual insurance to house owners in MD and PA.
I had to google it to learn more:
Perpetual insurance - Wikipedia, the free encyclopedia
Currently I am paying $355 a year for a conventional house insurance policy, which covers the building up to $238,000. The perpetual insurance will require a refundable deposit of $11,000 to get a similar coverage for my house. The deposit can be received back if I cancel the policy, considering that the insurer is still in business. $11K sitting in a bank savings account generates 0.9% at the current rate - $99 per year minus taxes. It looks like I can save at least $254 per year in exchange for the additional risk of losing the deposit if the insurer goes bankrupt.
I can switch back to the conventional coverage and get my deposit back if bank rates get significantly higher, I need cash to cover unexpected expenses or if the insurer loses its current A+ insurance company rating.
Am I missing anything?