Binders are temporary contracts that declare a policy is in effect.
Making changes or opening a new insurance policy?
Perhaps you bought a new car and want to make sure the car has auto coverage before you leave the lot? Or, if you are buying a new home, you may take an insurance binder to the closing to provide verification that your new home is immediately covered.
Insurance binders are temporary contracts that declare a policy is in effect. These interim policies are short-term and last for time it may take your insurance company to formalize your agreement. Binders do not confirm policy acceptance or denial by the insuring company. Available in both oral and written form, it is always best to obtain a hard copy when you purchase an insurance policy.
You can obtain a binder from your independent insurance agency, as the insuring company has provided binding authority for their approved products.
Not sure when you may need a binder? Your licensed insurance agent is qualified to help you make the right choices and clarify any confusion.
“The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any policies, nor does it provide any guarantees. You should read your specific policy for a complete description of coverage.”