I’m often asked what insurance binders are all about? Quite simply, an insurance binder refers to the agreement that you make with your insurance company.
It is a temporary proof of insurance that you will have access to while you wait for your actual policy to come through, thereby informing yourself and indeed others that though you may not have the official documentation just yet, you are fully insured and merely awaiting your confirmation policy.
An Insurance Binder Will List All Necessary Information
You should expect to find an outline of the insurance you have chosen, whether car, home or property insurance, listed here. This includes the necessary insurance conditions, the amount of coverage you have taken out, any deductibles alongside the names of those being insured.
A Breakdown of Key Elements Found in Insurance Binders
- An insurance binder will identify the risk that is to be insured. For example, if it’s a car being insured details such as its make, model, and serial number should all be included.
- The amount of liability insurance offered on the risk will be noted.
- The deductibles for each insurance section and the type of coverage and any limits. Included here may also be any insurance endorsements that are relevant.
- All named insurers must be specified as well as any additional people to be included on the insurance. The designated insurer is usually the owner of the car, home or property. Also, if it is a car being insured here and it’s from a finance and leasing company, they too should also be named on the binder.
- The name of the insurance company and the type of coverage offered. This must be clarified so there is no chance of misunderstanding or room for error.
- The date the insurance is valid from and until.
- Identification of the insurance agent and a disclaimer mentioning the insurance binder is subject to terms and conditions.