Insurance policies are actually a Unilateral contract (a promise for a promise). The applicability of coverage is determined at the time of the loss and not of the time of the application. This means an insurance binder is simply a statement that coverage is applicable contingent on all the other provisions of the contract. It is also a contract of adhesion. This means that it is generally presented on a “take it or leave it” basis, there is no negotiation.
Policies can be confusing and I suggest that you might need an attorney to sift through all of it to understand it.
Check your policies, complete insurance reviews every year, understand the difference between a tropical cyclone deductible and a wind and hail deductible and think about getting flood insurance. If you are helping your clients, I suggest that you get the insurance agent involved at the beginning of the transaction to evaluate the risk and to do an insurance inspection on the property so that there will not be any surprises at the last moment.