Your mortgage lender wants proof that the house they’ve just invested in is protected by an insurance policy.There are a few scenarios in which you need a binder, including: (Square One actually refers to our binders as Confirmations of Insurance. In the insurance world, a binder is a temporary document issued by your insurance company that basically says:īinders are temporary confirmations of insurance, to help you get things done while you’re waiting for your final policy to arrive.
Meanwhile, the bank that gave you a mortgage is breathing down your neck, waiting for proof that your new house is insured. Maybe your policy needs to be reviewed by an underwriter, or maybe the insurance company is just a bit slow.
Even after you’ve gone through the process with an insurance agent or broker, there might still be a short wait before you get your official policy documents. Buying an insurance policy isn’t quite like buying a slice of pizza they don’t keep insurance policy wordings on a shelf, warm and ready to eat.
