What is an insurance binder? Do I need one for the closing?
A homeowner’s insurance policy for the property must be in force at the time of the closing. An insurance binder is a homeowner insurance company’s written commitment to insure title to the property, subject to the conditions and exclusions shown on the binder. Prior to closing, you will need to obtain a Homeowner’s Insurance Policy. Your mortgage loan commitment letter will detail exactly how the binder should be worded and what coverage is required. You should try to take care of this as early as possible to ensure a smooth transaction. Please bring the binder and paid receipt to closing evidencing one year of Homeowner’s Insurance coverage.
