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What is the Difference Between a Binder and a Declarations Page?

A binder is a quickly prepared single page document that spells out coverage, owner, lender and effective date of the policy usually issued by an agent to be used as proof of homeowner coverage at the time of closing of a loan. A declarations page is a more thorough description of coverage issued by the insurance company after the underwriting process is complete. It usually comes attached to the policy which contains page after page of all the coverages, endorsements and exclusions. The declarations page is sometimes called the face page. It usually sits on top of the policy when the insurer sends out a copy to you or your lender. It's a good idea to closely inspect the declarations page to be sure it has all the right coverages and limits you asked for at the closing when the binder was prepared.