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Why is an Insurance Binder Good for Only 30 days?

30 days is usually enough time for the insurance company to determine if they really want to insure you and your property or not. Something about the risk may not exactly fit the guidelines of the company or you may discover that the coverage you thought you were getting wasn't as complete as you like. The coverage is guaranteed for 30 days so you and the company both can finish the process to purchase the car or piece of property. 30 days gives the company time enough to run all the reports on you and the property and do their inspections. Rarely does it take longer than that for the company to make up their mind. Sometimes, though, delays can call for another 30 day binder to be issued to satisfy some underwriting requirement before the permanent policy can be issued.