An insurance binder acts as a placeholder for a formal insurance policy. You may need to provide a lender with an insurance binder in order to take possession of an asset used to secure the loan.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas ...

Mortgage lenders commonly require that borrowers maintain a homeowners insurance policy on their home. Depending on how the timing lines up with closing on the property and completing the home ...

When you’re planning to buy your dream home and need to take out a mortgage, you'll need a homeowners insurance binder to close on your home. Most lenders require that you carry homeowners insurance ...