Insurance
Annual premium
Applies the insurer's rate per thousand to the insured structures and contents.
The Formula
Premium = (dwelling + contents) / 1,000 x rate per 1,000
Applies the insurer's rate per thousand to the insured structures and contents.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| C | Contents cover | currency | Cover for belongings. |
| r | Rate per 1,000 | currency | Annual premium per thousand of cover. |
What Each Symbol Means
Ccurrency
Contents cover
Cover for belongings.
rcurrency
Rate per 1,000
Annual premium per thousand of cover.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate homeowners 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 Homeowners Insurance, filed under Finance. Every number the guide produces comes from substituting into this one line.