What Is an Insurance Binder?
What Is an Insurance Binder? The insurance binder represents the agreement between you and the insurance company and is a confirmation in writing that a policy will be issued and that you are insured. Definition of Insurance Binder An Insurance Binder is a temporary document issued by an authorized insurance representative that serves as proof of insurance for your home insurance, property or car. Your binder of insurance will outline the basic conditions, coverages, deductibles and named insureds that will appear in your insurance contract. An insurance binder is subject to all the terms and conditions of the pending insurance contract. What Information Is Included in an Insurance Binder? The insurance binder should include all the necessary information about the insurance contract that has been purchased. An Insurance Binder Will Include the Following 7 Key Elements: 1. The insurance binder should clearly identify the risk. The risk is that which is insured. For example, if the bi...