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Home > Maths I > Numbers and Money > Insurance premiums

Maths I

Insurance premiums

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House insurance

A model house made from two folded cash notes.

There are two types of house insurance:

  • Buildings
  • Contents

The amount you pay each year is called a Premium.

Buildings insurance Example

Wisesure Insurance Company will insure buildings at 27p per £100.

Question

Dave wants to insure his flat which is worth £27000 with Wisesure.

Find the premium he must pay.

Answer

Premium per £100 = 27p

Premium due = 27p x(27000 / 100)

= 27p x 270

= 7290p

= £72.90

Have a go at this question:

Question

Sybil wants to insure her flat worth £35000 with Wisesure.

Work through this example and write down the missing values as you go along.

Premium per £100 = 27p

Premium due = 27p x (? / 100)

= 27p x ?

= ? p

= £94.50

Answer

Premium per £100 = 27p

Premium due = 27p x (35000 / 100)

= 27p x 350

= 9450p

= £94.50

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