Binder

An insurance binder is a temporary legal document issued by an agent that provides immediate, short-term proof of insurance while your formal policy is being underwritten. It serves as a bridge, confirming that coverage is active until the permanent policy arrives. For homebuyers, a binder is often required by mortgage lenders at the closing table. It typically lasts for 30 to 90 days and includes essential details like coverage limits, deductibles, and the carrier’s name.