A premium is the fee you pay to the insurer for your insurance cover.
What you pay, and when you pay depends on the value placed on your property. How much are you willing to spend for its protection? The majority of people are willing to pay an insurance premium in order to protect the things they value the most.
It is a reflection of what the insurer considers is the probability you will make a claim. Usually the insurer’s business costs and the benefits of any discounts or bonuses the insurer may offer to you is also included. The amount you have to pay is shown in the policy schedule, which the insurer will send you when the cover has been arranged.