For how long may a binder be effective?

A binder is a temporary insurance contract that provides coverage until a formal policy is issued. In the case of personal lines insurance in Nevada, a binder is typically effective for a period of 90 days. This allows the insured to have immediate protection while the underwriter processes the application and prepares the full policy documentation. The 90-day duration ensures that the insured is covered during a reasonable period, allowing time for any necessary underwriting, inspections, or other processes that could delay the issuance of a formal policy. This practice is common across many states and provides peace of mind to policyholders as they transition into a more permanent insurance arrangement.