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Perpetual insurance is a class of the homeowners insurance policy that is made to have no date or term when the policy ends. From the beginning date, the coverage exists for perpetuity. The insured deposits a premium, with the insurer for insurance for the duration of any risk. The premium deposit is typically at least 10x greater than the cost of a no refund, annual premium for an equal policy with a one year term. The insurer has to earn enough money from investing the premium to cover losses and expenses for perpetual insurance to make sense. When canceled, the insured person is granted a full refund of the initial deposit premium, typically with no interest.
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