All any document that demonstrates you have viable and active insurance for your home, auto, or other items can act as proof of insurance. The document homeowners most often to show they have insurance is the declarations page. This is a one-page summary that comes with your home insurance policy and typically states:
Your dec page isn’t the only document that can act as proof of insurance. Depending on who’s asking, you may also be able to use a letter from your insurance company or agent. If push comes to shove, you can even use your full policy as proof of insurance.
Whatever document you use, just be sure it lists the named insured, coverage limits, policy number, and the policy’s effective date and expiration date. For a homeowners policy, your proof of insurance should also list the insured property’s address and your mortgage provider. Proof of insurance for other types of coverage may need other details.
Situations when you need proof of insurance depend somewhat on the type of insurance you’re talking about. For example, you might need proof of auto insurance if you’re pulled over by a police officer. A landlord may also want to see proof of renters insurance before you sign a new lease.
As a homeowner, you’ll most likely need proof of insurance when you get a mortgage or refinance your home. Your mortgage lender wants to see that the home is adequately covered to protect its financial interest in the property.
Imagine, for example, that you get a mortgage and buy a home without getting homeowners insurance only to see the property totally destroyed in a fire. You’d still be responsible for paying off your mortgage, but you may be tempted to walk away. And without a home to repossess and sell, the mortgage company could end up taking a loss on the entire deal.
Getting proof of insurance is easy. In fact, insurance policies usually come with a declarations page so you have proof of insurance as soon as you buy coverage. If you’re a Kin policyholder, you can also download your declarations page and other documents through our online portal. That way, you can share the file electronically or print a copy if that’s required.
Proof of insurance may not be enough to satisfy your mortgage lender’s requirements. Some lenders want to be named as an additional insured. As an additional insured, the lender receives notifications of major changes with the insurance policy such as a policy cancellation. If you cancel your policy, your lender may be notified and might obtain insurance on your behalf and bill you for it through your mortgage. This is called force placed insurance, and it’s usually more expensive than home insurance you purchase on your own.