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.
