When you are awaiting the formal issuance of a policy from your home insurance provider, an insurance folder serves as a temporary proof of coverage. When buying a home, certain types of insurance coverage are required even before you become an official homeowner. In the event that you do not have standard insurance coverage at this time, your insurer will issue a home insurance folder.

Often referred to as mandatory coverage, a home insurance portfolio is a set of legal documents that establishes the agreement between you and your insurer and provides proof of coverage in the absence of a formal policy. Insurance folders generally last 30 to 90 days and no longer provide coverage after expiration. Since this is a temporary contract, a home insurance folder may also be called a title folder, temporary folder, insurance card, or certificate of insurance.

When your insurer issues you a home insurance folder, make sure of the following details:

• Correct and updated information about the policy and the insured
• Confirmation of the date standard coverage will be issued
• Follow up with the insurer on the issuance of the policy because insurance folders are short-lived.

Why do I need a home insurance folder?

A good example of a home insurance portfolio is the scenario where you are about to buy a home but your home insurance policy has not yet been issued and you cannot close the deal without proof of coverage. This is when you need a safe folder. Mortgage lenders often need you to show proof of home insurance before approving the loan, and a folder provides proof of coverage when you have not yet received your formal policy documents.

In addition to helping you apply for financing and purchase a property, a home insurance portfolio will also allow you to file a claim even if you don’t already have your formal policy. It is normal for the insurer to take a few days to complete the paperwork. You should always request a folder when buying new insurance, but don’t get your policy documents right away.

Not all companies issue home insurance folders. When an insurance provider uses advanced technological tools to conduct business, policy documents are issued online and in a few hours and there is no need for a folder.

What does a home insurance folder include?

When you receive a folder, it will be your only proof of insurance coverage until you receive your policy documents. Therefore, it must be confirmed that all the necessary details have been included in the folder. These are:

• Property details: The insurance folder should include the insured item, also known as the risk. Details such as the address of the property, the amount of the home equity coverage, and in the case of an apartment or condominium, the insured personal property must be present in the folder.
• Insured data: All information about the insured must be included in the home insurance folder. This usually indicates the owner of the property, but if there are multiple owners, then the folder should have details of all of them.
• Insurance company details: The home insurance folder should clearly indicate the name and address of the issuing insurance company, as well as the details of the agent through whom the policy was purchased (if applicable). To avoid misunderstandings or later mistakes, the folder should also include the exact type of coverage for the property.
• Coverage Details: The amount of liability coverage on the property should be highlighted in the homeowners insurance folder, in addition to all other types of coverage for structure and personal property. Deductibles and limits must also be specified for each type of coverage, along with important insurance endorsements that have been added to the policy.
• Detail of the term and date of issue: The binding party must not fail to mention the duration of the policy (six or twelve months) and the exact date on which it comes into force.

How to get a home insurance folder

The process of obtaining an insurance folder is easy and straightforward. In most cases, when the policy is not written right away, your home insurance provider will automatically issue you a temporary folder. If not, you should ask your provider to issue you one until you have the formal policy documents. Once you pay for the insurance, always make sure you have some kind of proof of coverage if your policy doesn’t go into effect right away.