It serves as evidence that you have homeowners insurance in place and that you’re fully covered in the meantime. What is an insurance binder?Īn insurance binder is a temporary document that insurance companies provide to lenders on your behalf, before your policy document is available. This is where an insurance binder comes in. Despite not having your homeowners policy in hand, your lender will still require proof of coverage before closing. It’s quite possible, however, your insurance policy won’t be available until after the title is transferred to you. When you take out a mortgage to purchase a home, you’ll need to provide evidence of a homeowners insurance policy.
