Buyer’s Guide: What is an Insurance Binder

Buyer’s Guide: Insurance Binder

In recent weeks we have seen a slight balancing of the Windsor real estate market. While we are still very much in a seller’s market, a lot of competition has moved to the upper-level of homes and the entry/middle level homes have experienced a slight decrease in action and some price balancing. That means more people are taking a positive approach to the market and are resuming their searches for Windsor homes. Search bars are starting to fill up again with houses for sale in Windsor and homes for sale Windsor, Ontario as their Windsor REALTOR® advises them now may be a good time to try and seize an opportunity. On that note, many have indeed seized an opportunity and finally found themselves a home in Windsor-Essex County. When you buy that house you need insurance on your home and when you close on your home, you’ll need an insurance binder. Let’s discuss what these are so when you purchase your home, you're prepared.

An insurance binder represents the agreement between you and your insurance company and it essentially confirms in writing that your policy will be issued. Your insurance binder acts as a proof of insurance that you can use until you receive your actual policy. Please be aware, your insurance binder may only be issued for a limited time and have an expiry date.

Your insurance binder will have 7 key elements:

The insurance binder should clearly identify the risk
Liability insurance amount
Deductible and coverage limits
Specify the name(s) of the insured
Clearly indicate the insurance company and the type of policy
Clearly state the term,i.e. Start and end date.
CLearly state the agent who authorized the insurance policy

Insurance is the most important thing to get when you purchase your home. You made the biggest purchase in your life, protect it!

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!