Insurance
Annual premium
Contents priced per thousand, plus a base charge for liability.
The Formula
Premium = contents / 1,000 x rate + liability base
Contents priced per thousand, plus a base charge for liability.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| r | Rate per 1,000 | currency | Annual premium per thousand of contents. |
| b | Liability base | currency | Flat annual charge for liability cover. |
What Each Symbol Means
rcurrency
Rate per 1,000
Annual premium per thousand of contents.
bcurrency
Liability base
Flat annual charge for liability cover.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate renters insurance page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Renters Insurance, filed under Finance. Every number the guide produces comes from substituting into this one line.