Binder
Insurance Glossary
A temporary contract that puts coverage in force before the full policy is issued, stating the coverages, the limits and the effective date. Lenders commonly accept one as proof of insurance at a closing, since the policy documents can take days or weeks to arrive. It expires on a stated date or when the policy is issued, and an insurer can still decline to issue the policy if underwriting turns up something the application did not disclose.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.