What A Is Home Insurance Binder? 
An insurance binder is a temporary issuance of proof of insurance that will `` bind '' or cover you temporarily until a formal policy is issued . The binder must contain your name as the insured , the limits of coverage in dollar amounts , what type of insurance it is , what is actually being covered -LRB- such as your car or home -RRB- and the company issuing the insurance . The beginning date must be evident . If there is a loan used to buy what is being insured , the lender -LRB- lienholder -RRB- information should be listed as well . 