It might also be mailed to you or the lender.Īt your request, the binder can also be faxed to the mortgage lender or other interest requesting the binder. You should be able to receive the binder immediately via email or fax, or by downloading it from your online account. If the binder is not included, contact the insurance agent or company to request a binder. Review the documents you receive after completing your homeowners insurance application. If your insurance company does not automatically issue a home insurance binder, you can typically request one using the following steps: Types of protections, like dwelling, personal property, loss of use, personal liability and medical payments coveragesĬovered perils, such as fire, hail and windĮffective dates, including when the coverage begins and ends Insurer details, including the name of the insurance company and insurance agent A binder also enables you to file a claim should there be a covered incident that occurs before you receive your policy documents. It may take some time to receive your policy documents after you purchase a home insurance policy, so a home insurance binder may provide the proof of coverage that your lender needs in order to approve your mortgage. The lender will typically provide a list of documents they require for the underwriting process and the timeline you need to provide them, which is determined by your closing date. Lenders often request proof of homeowners insurance before they will approve a mortgage loan. It usually contains one or two pages of essential information about your policy, like the effective and expiration dates, named insurance information, coverage choices and property address. If not, you can request a binder from your insurance agent or the company. The insurance company may automatically issue a homeowners insurance binder after you finalize the application. Once your formal policy is issued, the binder expires.

This temporary agreement between you and your insurance company is usually effective for 30 to 90 days. What is a home insurance binder?Ī home insurance binder is a temporary contract that provides proof of insurance while your homeowners insurance policy is going through the underwriting process. But what happens if your lender requires homeowners insurance but you haven’t received your policy documents in time for closing on your home? In this situation, you may need a home insurance binder. Some lenders will even require proof of home insurance before they will approve a loan as part of the underwriting requirements. This is done in order to financially protect the lender in case there are covered losses that impact the home. When you take out a mortgage for a home, the lender will typically require you to carry homeowners insurance throughout the life of the loan.

Homeowners insurance binder sample