What Is A Premium On Homeowners Insurance? 
Premium is the cost of the policy , what you paid the insurance company to insure your house , auto , life , businesses , etc. . How it works is the actuaries -LRB- number crunchers -RRB- at the insurance companies calculate how much premium is need to cover a risk . Due any number of reasons such as bad losses , increased expenses , investment losses , premiums rates can fluctuate from year to year . This is why you want an independent insurance agent to help you keep tabs and shop your best options on the market . 