Key Insight: Your insurance binder will last between 30-90 days, and once the cover expires, you will not be protected. It will specify what protections you are covered for when you wait for your new policy, alongside any fees, deductibles, coverage limits, names of insured parties, and most importantly, the terms and conditions. Your insurance binder will detail sufficient evidence of your insurance coverage to an organization, such as your lender, that requests proof of insurance. Typically, issuing a new policy can take anywhere between days or weeks as it relies on the underwriting process.
It’s a temporary policy that operates as a placeholder(link) while your formal policy is prepared. When buying a new house or car, you will usually need some proof of insurance that is dated to begin when you assume ownership.Īn insurance binder is used in this case.
