Date of issue in insurance refers to the actual date your policy was created (note: this isn’t when your insurance kicks in and becomes active, that’s the effective date).
What is date of issue and how is it different from effective date?
On your insurance policy, you’ll probably notice there are a bunch of different dates, including date of issue, effective date, expiration date, and sometimes even a policy date. Yikes.
The most important one to know is your insurance policy’s effective date, which is the date your policy is activated.
Date of issue simply refers to the date your insurer created the contract (your insurance policy), which isn’t necessarily when your coverage starts.
Date of issue, illustrated
Let’s say you’re moving into a new apartment on June 30th, and want to get HO4 insurance for your new address.
On May 30th, you contact your insurer (or, in some cases, update your new address through your insurer’s app), and let them know when you’ll be moving in.
When your insurer sends over your new policy, the date of issue will reflect the day your policy was created (May 30th), whereas the effective date will be your move-in date and hence the start of your coverage (June 30th).
Home buying and date of issue: Why it’s important
Date of issue also comes into play when you’re buying a home. Mortgage lenders often require proof you have insurance before accepting your request for a loan.
But you can’t have insurance on something you don’t yet own.
That’s why insurance companies make it possible to issue a policy on one date, and have it go active at a later point in time.
Side note: It’s always a good idea to get a new policy in advance of moving into your new apartment.
As we all know, moving is a pain, and things like insurance can often get lost in the shuffle. You’ll enjoy some peace of mind knowing you’re protected from the minute you open the door, and you’ll have one less thing to deal with once the unpacking begins.
Where can you find the date of issue on your policy?
The date of issue and all other important dates relevant to your coverage can be found on the declarations page of your insurance policy.
Pro tip: While you’re there, take a look at your personal info and make sure everything is correct! A common mistake we often see is typos when entering home addresses.