Insurance premium
Definition
An insurance premium is the amount an insurer charges for coverage. On a mortgage, homeowners, flood, or mortgage-insurance premiums may be paid at closing or through escrow.
In plain English
A premium is the price of the policy, not the coverage itself. Mortgage borrowers often pay some premiums through the escrow account so the servicer can pay the insurer when the bill is due. Different policies have different premiums. This page is the charge, not a particular product.
Technical definition
Fannie Mae’s consumer glossary defines an insurance premium as the amount a company charges for insurance coverage. That heading is PRIMARY.
Why it matters
Escrow analyses move when premiums change. Readers need the charge idea before the product pages.
Sources reviewed
Glossary of key terms
ObservedSeptember 4, 2026