What does an insurance binder actually mean?Īn insurance binder is a short document that verifies your insurance coverage before your policy is issued. My lender is asking for an insurance binder. Insurance binders are used in a variety of situations, including financing a car or buying a home, and may be required by lenders or landlords.Ī binder outlines key terms of coverage, including named insured, coverages, deductibles, effective/expiration dates, and contact info of the insurer. An insurance binder is a temporary document that verifies insurance coverage before full policy documentation is issued.
