What is a Binder?

A binder is a legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a policy can be issued. Binders should contain definite time limits and be physically written down. Binders should clearly designate the insurer with which the risk is bound.

Understanding Binders

Binders are helpful because they allow you to have proof of coverage during certain irregular periods. For example, having proof of coverage while waiting for your new insurance policy to arrive in the mail. Binders can allow you to demonstrate proof of coverage to a lender while waiting for a new policy to start.

Binders vs. Declarations Pages

In some ways, a binder is similar to a declarations page. However, there are important differences between the two. A binder is a brief legal agreement that provides temporary evidence of insurance until a policy can be issued. They typically last 30-90 days. 

A declarations page can also act as proof of insurance. This is because the declarations page includes several important details about your insurance policy, such as your name, address, limits, and policy endorsements. However, a declarations page usually lasts the entire term of a policy.

Related Terms


Declarations Page

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