What’s a home insurance binder?

When you think of binders, you may think of school or work. But home insurance? 

Yes, a home insurance binder is a real (though temporary) thing. You can think of it as a temporary driver’s license that gets you on the road while you wait for your permanent license to arrive. Insurance binders provide proof of your coverage until your complete policy is done.

Learn more about what a home insurance binder is, why you need one, what’s included and how long it lasts:

What is a home insurance binder?

A home insurance binder is a temporary document that serves as proof of your policy until the underwriting process is complete. They provide details on your coverage. When you receive your complete policy, you no longer need the binder.

Why would you need one?

When you apply for a mortgage, you have to show your lender that you’ve purchased homeowners insurance. A home insurance binder provides proof of coverage until you receive your full policy.

What’s included in a homeowners insurance binder?

This is what you’ll typically find in a home insurance binder:

  • How long the policy lasts
  • Information about your insurance company
  • Deductible, coverage amounts and limits
  • Type of policy
  • Hazards you’re protected against (such as weather-related damage, theft and vandalism)

Does a home insurance binder expire?

Insurance binders are generally valid for about a month. Once you receive your final policy with its declaration page, you no longer need the binder.

Have questions about your home insurance? Reach out so we can chat.