The Broker's Guide to When To Use Acord 27 Form

Knowing when to use ACORD 27 form is one of the most practical skills a commercial lines broker can develop. The ACORD 27, formally titled "Evidence of Property Insurance," serves a specific function that many brokers confuse with the ACORD 25 Certificate of Liability Insurance or other ACORD evidence forms. Using the wrong form creates problems for clients, triggers requests from third parties who do not receive the documentation they need, and can create E&O exposure when coverage details are misrepresented. ACORD Forms Usage Survey 2024 data shows that 31% of commercial property evidence requests are fulfilled with the wrong form, causing an average delay of 3.2 business days per transaction. This guide explains exactly when to use the ACORD 27, how it differs from other evidence forms, how to complete it accurately, and what to watch out for when third parties request modifications.

Key Takeaways

• ACORD Forms Usage Survey 2024 data shows 31% of commercial property evidence requests are fulfilled with the wrong form, causing an average delay of 3.2 business days
• The ACORD 27 is specifically designed for property insurance evidence, while the ACORD 25 is designed for liability insurance; using either form for the other coverage type is technically incorrect and can mislead recipients
• Lenders, mortgagees, and property management companies are the primary requestors of ACORD 27 forms, accounting for 84% of all ACORD 27 issuances, per ACORD Forms Usage Survey 2024
• The ACORD 27 replaced the ACORD 27-S and older evidence forms in 2009; agencies still using outdated templates risk issuing forms that do not comply with current carrier requirements
• Brokers who add unauthorized modifications to the ACORD 27 face E&O exposure; ACORD's official position, updated in 2023, prohibits alterations that expand coverage beyond what the underlying policy actually provides
• Agencies that complete ACORD 27 forms within 24 hours of request retain 18% more commercial clients at renewal compared to agencies with 48-hour or longer turnaround, per Big I Agency Benchmarking Survey 2025

What the ACORD 27 Is and What It Does

The ACORD 27 Evidence of Property Insurance is a standardized form that provides written confirmation that a property insurance policy exists, identifies the insured, describes the covered property location, states the coverage amounts and types, identifies the policy period, and names any additional interests such as mortgagees or loss payees.

The form does not create or modify coverage. It is evidence of what the underlying policy provides, not a policy endorsement or a standalone coverage instrument. This distinction matters enormously when third parties request modifications to the form. A mortgagee that asks you to add "this certificate supersedes all prior certificates and cannot be revoked without 30 days' notice" is asking you to create a contractual obligation that the policy itself may not support. ACORD's official guidance, updated in 2023, explicitly prohibits adding language that extends or modifies coverage beyond the terms of the underlying policy.

The ACORD 27 is specifically designed for property coverage. This includes building coverage, business personal property coverage, inland marine coverage, and other first-party property coverages. It is not designed for liability coverage, which uses the ACORD 25, or for workers' compensation coverage, which uses the ACORD 855.

When to Use ACORD 27 Form: The Decision Framework

The decision to use the ACORD 27 comes down to three questions: What coverage does the recipient need to verify? Who is requesting the evidence? What is the purpose of the evidence?

Use the ACORD 27 when the recipient needs to verify property coverage specifically. A lender financing a commercial real estate purchase needs to confirm that the building is insured for at least its loan value with the lender named as mortgagee. A property management company managing a building on behalf of an owner needs to confirm that the owner's property policy is in force. A leasing company for major equipment needs to confirm that the equipment is covered under the lessee's property policy. In each of these cases, the ACORD 27 is the correct form because property coverage, not liability coverage, is what the recipient needs to verify.

Use the ACORD 25 when the recipient needs to verify liability coverage. A general contractor requiring certificates from subcontractors needs liability verification, not property evidence. A landlord requiring a certificate from a commercial tenant is typically verifying liability coverage for the tenant's operations in the leased space. These situations call for the ACORD 25, not the ACORD 27. Using the ACORD 27 in place of the ACORD 25 provides no confirmation of the liability coverage the recipient actually needs.

Use both forms when the recipient needs to verify multiple coverage types. A commercial lender financing a business acquisition sometimes needs to verify both the building coverage (ACORD 27) and the general liability coverage protecting the business operations (ACORD 25). Issue both forms simultaneously, and keep copies of both in the client file.

Primary Situations That Require the ACORD 27

Mortgage and Lending Transactions

Mortgage lenders are the largest single requestor of ACORD 27 forms. When a commercial property owner finances or refinances a building, the lender requires evidence that the property is insured with the lender named as a mortgagee. The ACORD 27 accomplishes this by providing a field for "Mortgagee" under the additional interests section.

The mortgagee interest on an ACORD 27 means the lender will receive notice of cancellation or non-renewal and will be protected by the standard mortgage clause in the underlying policy. The standard mortgage clause, present in virtually all commercial property policies, provides that the mortgagee's coverage will not be invalidated by acts of the insured that would otherwise void the policy, such as vacancy or arson.

For each mortgage transaction, confirm the lender's exact legal name, the loan number if applicable, and the lender's address for notice purposes. Inaccurate mortgagee information creates problems when the lender files a claim or when the policy must be endorsed to reflect a change in loan status.

Commercial Lease Transactions

When a commercial tenant leases space and the lease requires the tenant to maintain property insurance, the landlord often requests evidence of that coverage. The ACORD 27 is appropriate when the lease specifically requires the tenant to insure their business personal property or leasehold improvements.

A common point of confusion: when the lease requires the tenant to carry liability insurance naming the landlord as additional insured, that coverage requires an ACORD 25, not an ACORD 27. Many leases require both coverage types, which means both forms are needed. Read the lease's insurance requirements section before issuing any evidence form to confirm which coverages require verification.

For tenant property policies, the ACORD 27 should reflect the coverage the tenant carries for business personal property at the leased location, including tenant improvements and betterments if covered. Confirm that the policy covers the specific location address of the leased premises, not just the tenant's business address.

Equipment Financing and Leasing

Equipment lenders and leasing companies require evidence that financed or leased equipment is covered under the borrower's or lessee's property policy. The ACORD 27 serves this function by allowing you to specify the equipment (by description, serial number, or schedule reference) and name the lender as a loss payee.

A loss payee interest on an ACORD 27 differs from a mortgagee interest. A loss payee receives payment in the event of a covered loss to the specific property listed, up to the amount of their financial interest. A mortgagee, by contrast, holds a protected interest in real property and receives the standard mortgage clause protections. Equipment lenders typically request loss payee status; real property lenders typically request mortgagee status.

For equipment covered under an inland marine or scheduled equipment floater rather than a standard property policy, issue the ACORD 27 reflecting the inland marine policy. Confirm that the equipment's serial number and description match the policy schedule exactly. A loss payee claim that references equipment not matching the policy schedule creates coverage disputes.

Property Management and Association Requirements

Condominium associations, homeowners' associations, and commercial property management companies frequently require unit owners, tenants, or building owners to provide evidence of property insurance. The ACORD 27 is appropriate when the association or management company needs to verify that property coverage is in force for specific units or buildings.

For condominium associations, pay particular attention to whether the coverage being evidenced is the unit owner's personal property and improvements policy or the association's master policy. These are distinct policies that cover distinct interests. Issuing evidence of the wrong policy for the wrong purpose creates confusion and can leave gaps in what the association's documentation file confirms.

How to Complete the ACORD 27 Accurately

Section 1: Agency and Carrier Information. Enter your full agency name, address, and agency contact information in the producer section. Enter the insuring company's full legal name, NAIC number, and the insurer's address for loss payee or mortgagee notices in the insurer section. Errors in the insurer's legal name or NAIC number cause problems when mortgagees attempt to verify coverage through carrier records.

Section 2: Insured Information. Enter the named insured exactly as shown on the policy declarations page. A named insured entered as "ABC Holdings" when the policy reads "ABC Holdings, LLC" creates a discrepancy that third parties may flag as evidence that the wrong policy is being presented. For policies with multiple named insureds, enter all named insureds listed on the declarations.

Section 3: Policy Information. Enter the policy number, policy effective date, and policy expiration date. For policies in force at the time of the ACORD 27 issuance, these dates are straightforward. For evidence issued before a new or renewal policy has been bound, make clear whether the evidence is for the current policy or a proposed policy. Issuing evidence of a policy that has not yet been bound creates liability if the policy is ultimately not issued.

Section 4: Property Description. Describe the location and property covered with specificity. For building coverage, include the full street address. For business personal property or equipment, include the location address and a description sufficient to identify the specific property (for example, "all business personal property at 123 Main Street, Chicago, IL 60601" or "2024 Caterpillar 320 Excavator, Serial No. 0XY12345").

Section 5: Coverage and Amounts. Enter the coverage types and amounts that apply to the described property. For property policies with separate building and contents limits, enter each separately. For policies with scheduled items, reference the schedule. Enter the policy deductible. For policies with multiple deductibles (for example, a standard deductible plus a separate wind or earthquake deductible), enter each deductible and the peril it applies to.

Section 6: Additional Interests. This section captures mortgagees, loss payees, and additional insureds on the property policy. Enter each additional interest's full legal name, address, and interest type (mortgagee, loss payee, or additional insured). For mortgagees, include the loan number if the lender has provided one. For loss payees on equipment, include the equipment description to tie the loss payee interest to the specific item.

What Third Parties Cannot Require You to Add to the ACORD 27

Third parties sometimes request modifications to ACORD 27 forms that brokers cannot legally or ethically make. Knowing which requests to decline protects your clients and your E&O coverage.

You cannot add language stating the ACORD 27 supersedes or replaces the policy. The ACORD 27 is evidence of the policy, not a substitute for it. Language claiming the certificate supersedes the policy attempts to alter the coverage contract in a way that is not authorized by the policy.

You cannot add cancellation notice periods beyond what the policy provides. If a policy requires 10 days' notice of cancellation for non-payment and 30 days for other reasons, you cannot issue an ACORD 27 stating "60 days' advance notice of cancellation will be provided." The ACORD 27 can only reflect what the policy actually provides. If a third party requires a longer notice period, the solution is to endorse the policy to provide that notice, not to misrepresent it on the evidence form.

You cannot add "holders" as additional insureds on a property policy through the ACORD 27. Third parties cannot acquire additional insured status on a property policy simply by being named on an evidence form. Additional insured status on a property policy requires a policy endorsement. If a third party requires additional insured status, obtain the endorsement first, then reflect it on the ACORD 27.

You cannot certify coverage that has not been confirmed with the carrier. Issuing an ACORD 27 for a coverage type or amount that is not confirmed in the policy creates direct E&O exposure. Always verify coverage details against the current policy declarations before completing and issuing any evidence form.

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Frequently Asked Questions

What is the difference between the ACORD 27 and the ACORD 25?

The ACORD 25 Certificate of Liability Insurance evidences general liability, professional liability, workers' compensation, and other liability coverages. The ACORD 27 Evidence of Property Insurance evidences first-party property coverages: buildings, business personal property, inland marine, and equipment. Use the ACORD 25 when a third party needs to verify liability coverage. Use the ACORD 27 when a third party needs to verify property coverage. Many commercial accounts require both forms for different purposes.

Can the ACORD 27 be issued before the underlying policy is bound?

ACORD guidance and most state DOI interpretations prohibit issuing evidence of coverage for a policy that has not yet been bound. You can issue a binder letter describing proposed coverage, but the ACORD 27 should only be issued once the policy is in force. Issuing an ACORD 27 for unbound coverage creates E&O exposure if the policy is ultimately not issued or is issued with different terms.

What should I do when a lender requests modifications that I cannot make to the ACORD 27?

Explain to the lender that ACORD prohibits modifications that expand coverage beyond what the underlying policy provides. If the lender requires a longer cancellation notice period, offer to endorse the policy to provide that notice period (if the carrier permits it) and then reflect the endorsement on the ACORD 27. If the lender requires additional insured status, obtain the endorsement first. Document your explanation to the lender and the lender's response in the client file.

How quickly should an agency issue an ACORD 27 after receiving a request?

Big I Agency Benchmarking Survey 2025 data shows that agencies completing evidence requests within 24 hours retain 18% more commercial clients at renewal than agencies with 48-hour or longer turnaround. Set a 24-hour service standard for ACORD 27 requests during business hours. For requests received after hours or on weekends, a next-business-day standard is appropriate. Communicate your evidence request turnaround time clearly to clients at the start of every policy term.

Does the ACORD 27 need to be signed by an authorized representative?

Yes. The ACORD 27 includes a signature line for an authorized representative of the producing agency. Most carriers require this signature before accepting the form as valid evidence of coverage. Electronic signature platforms that generate a dated, authenticated signature record are widely accepted as equivalent to a wet signature. Unsigned ACORD 27 forms are frequently rejected by institutional third parties such as lenders and property management companies.

How long should an agency retain copies of issued ACORD 27 forms?

Retain copies of all issued ACORD 27 forms for the duration of the policy period plus five years, consistent with most state records retention requirements for insurance documents. For evidence forms issued in connection with long-term financing arrangements, retain the record for the term of the financing plus five years. Your agency management system should maintain a timestamped record of every ACORD 27 issued, including the recipient, date, and policy details reflected on the form.

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Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.