Binders are typically used in which category of insurance?

Binders are a temporary form of insurance that provide immediate coverage until a formal policy is issued. They are most commonly associated with Property and Casualty Insurance. This type of insurance often requires quick coverage due to the changing nature of property risks, such as in real estate transactions or during events where there is a need for immediate protection against potential losses.

For example, when purchasing property, a binder can be issued to ensure the buyer has coverage from the time of the sale until the formal policy is completed, thereby protecting the lender and the buyer. In contrast, Life, Health, and Disability Insurance typically do not use binders because these policies often involve more comprehensive underwriting processes and are less subject to immediate risk changes like those found in Property and Casualty contexts.