The Ultimate Guide to ACORD 27 Evidence of Property Insurance in 2026

ACORD 27 is the Evidence of Property Insurance form. Lenders, landlords, equipment lessors, and government agencies use it to confirm that a named insured carries property coverage on a specific location. It is property-specific - it is not interchangeable with ACORD 25 (liability) or ACORD 24 (property for personal lines). Errors on ACORD 27 - wrong property address, wrong mortgagee name, missing ISAOA/ATIMA language - delay loan closings, put borrowers in default, and create E&O exposure for the issuing agency.

Key Takeaways

• ACORD 27 evidences commercial property insurance. ACORD 25 evidences liability. Sending the wrong form wastes time and signals the agency did not read the request.
• The mortgagee section requires ISAOA/ATIMA language on virtually every lender-required certificate. Omitting it puts secondary-market mortgage holders in an unprotected position.
• ACORD 27 is the general-purpose form. ACORD 28 (Evidence of Commercial Property Insurance) is the lender-specific version with full mortgage clause fields. Many institutional lenders require ACORD 28, not ACORD 27.
• The acord-form does not create coverage and does not modify the policy. If the underlying policy lacks a standard mortgage clause endorsement (ISO CP 12 18), the certificate's mortgagee language is not backed by the policy.
• ACORD 27 differs from a declaration-page in three material ways: authority, detail, and direct mortgagee rights.
• SBA lenders follow SBA Standard Operating Procedure 50 10 7.1, which requires Special Form coverage and caps deductibles. Certificates that show Basic Form or high deductibles trigger SBA compliance flags.

What ACORD 27 Is - and What It Is Not

ACORD 27 (Evidence of Property Insurance) is a one-page standardized form published by the Association for Cooperative Operations Research and Development. It communicates property insurance information to third parties with a financial interest in the insured property.

The form does not create coverage. It does not alter policy terms. It does not extend rights to the certificate holder beyond what the underlying policy already provides. ACORD prints a disclaimer directly on the form: "This evidence of insurance is issued as a matter of information only and confers no rights upon the additional interest named below." That disclaimer cannot be crossed out or modified without creating a document that contradicts the policy.

Requestors fall into four main categories: mortgage lenders (commercial and residential), commercial landlords requiring tenants to insure improvements, equipment lessors, and government agencies overseeing grant-funded property. Each has slightly different requirements for what the form must show.

ACORD 27 vs ACORD 25: Property vs Liability

ACORD 25 (Certificate of Liability Insurance) evidences general liability, auto liability, umbrella, and workers compensation. ACORD 27 evidences building, business personal property, and associated property coverages.

A lender financing a commercial building needs ACORD 27. A general contractor requiring a subcontractor to carry liability coverage needs ACORD 25. Sending ACORD 25 when ACORD 27 is requested is a common agency error. It creates a paper trail showing the CSR did not read the certificate request - a reputational problem with lenders who process dozens of certificates daily.

ACORD 27 vs ACORD 28: Which Form for Which Situation

ACORD 28 (Evidence of Commercial Property Insurance) is designed specifically for mortgage lenders. It includes a dedicated loan number field, space to reproduce the full standard mortgage clause, and expanded mortgagee rights language. ACORD 28 is the preferred form for institutional lenders, CMBS lenders, and SBA lenders.

ACORD 27 is appropriate for landlords, equipment lessors, and other non-lender certificate holders who need property coverage confirmation. Many commercial mortgage lenders accept ACORD 27 with complete ISAOA/ATIMA language, but confirm the lender's specific requirement before defaulting to ACORD 27 on a mortgage closing.

The practical difference: an ACORD 27 showing a mortgagee with proper ISAOA/ATIMA language satisfies most conventional lenders. A CMBS deal or SBA loan may require ACORD 28 with full mortgage clause language. Get the lender's closing instructions before issuing.

Every Field on the ACORD 27 Form

The 2016 edition of ACORD 27 is the current standard. Understanding each section prevents the errors that generate claims and delays.

Header Section

Date. The certificate issuance date, not the policy effective date. Lenders compare this date to the closing date. A certificate dated four months before a closing may trigger a re-issue request to confirm current coverage.

Disclaimer. The standard disclaimer stating the certificate confers no rights. An insurance-producer who modifies or removes this language creates a document that misrepresents its own legal effect - a direct E&O problem.

Insured Information

Named Insured. Must match the named insured on the policy exactly. "Apex Commercial Properties LLC" is not the same as "Apex Properties" in a lender's system. Match the policy declaration-page character for character. Lenders reject certificates where the named insured does not match their borrower of record.

Mailing Address. The named insured's mailing address - not the property address. Commercial property owners with multiple locations often have a corporate mailing address that differs from every insured location.

Contact Name, Phone, Email. The agency's contact for follow-up. Some lenders call directly to verify coverage. An incorrect phone number delays closing.

Insurance Company Information

Company Name. The carrier writing the policy. For surplus lines carriers, some lenders require admitted coverage on mortgage collateral. An ACORD 27 showing a non-admitted carrier may trigger additional lender scrutiny or a carrier substitution requirement in the loan documents.

NAIC Code. The National Association of Insurance Commissioners numeric identifier for the carrier. Lenders use the NAIC code to verify the carrier's legitimacy and financial ratings in their systems. The NAIC code for Travelers Property Casualty Company of America is 25674. The NAIC code for Zurich American Insurance Company is 16535. A blank or transposed NAIC code raises an immediate red flag in lender review.

Policy Number. Exact policy number from the declarations page. A transposed digit creates a mismatch the lender's system cannot reconcile.

Producer Information

Agency Name and Address. The issuing producer's agency. This is the party lenders contact for certificate verification and re-issuance. Accurate agency contact information matters at every closing.

Agency Customer ID, Contact. Internal identifiers that let the agency match inbound lender calls to the correct client file.

Location and Property Information

Location of Property. The most error-prone field on ACORD 27. The address must match the insured location on the declarations page - street number, street name, city, state, zip, suite or unit number. For commercial owners with a schedule of locations, the certificate must reference the specific collateral property, not a generic description.

A building owner with 12 locations insured under a single policy cannot submit a certificate showing "various locations" to a lender financing one specific building. The lender needs confirmation that the specific collateral address is insured.

Description of Property. A brief description of what is covered. "3-story commercial office building, 18,000 sq ft" is useful to a lender. "Commercial building" is not. For equipment coverage, identify the specific equipment or fleet. Lenders track collateral by description - vague entries slow reconciliation.

Coverage Information

Type of Insurance. The specific coverage form. Common entries:

Lenders require Special Form coverage as a baseline. A certificate showing Basic Form coverage on mortgage collateral triggers a lender notice to the borrower to upgrade - and may constitute a loan covenant default until remedied.

Carrier Form Number. Where possible, include the ISO form number. ISO CP 10 30 06 07 (the 2007 edition of the Special Causes of Loss - Special Form) is the most common commercial property form in use in 2026. Naming the form number eliminates ambiguity about whether the policy covers the breadth the lender requires.

Deductible. The deductible applicable to the covered location. SBA lenders operating under SBA SOP 50 10 7.1 generally require deductibles no greater than $10,000 on collateral property. Some conventional lenders cap deductibles at 1% of insured value. A high deductible on the certificate may trigger a loan condition requiring coverage upgrade.

Amount of Insurance. The coverage limit for the specific property. This must equal or exceed the lender's required insured value. Most lenders require replacement cost value (RCV). Showing an actual cash value (ACV) limit when RCV is required misrepresents the coverage basis. A 10% understatement of value can shift the carrier's coinsurance obligation and reduce the actual claim payment below the stated limit.

Replacement Cost Indicator. Confirms whether coverage is on a replacement cost or actual cash value basis. If the policy carries an agreed value endorsement, note it. Policies with coinsurance at 80% or 90% can reduce claim payments below the policy limit - lenders aware of coinsurance will require a coinsurance waiver or agreed value endorsement.

Effective Date / Expiration Date. The policy period for the covered property. Lenders track expiration dates and require evidence of renewal before coverage lapses. A certificate with an expiration date before loan maturity triggers an ongoing monitoring requirement. SBA lenders require evidence of renewal no later than 10 days after expiration.

Additional Interest Section

The additional interest section places lenders and mortgagees on the certificate. It is where most E&O-generating errors occur.

Name of Person or Organization. The exact legal name of the mortgagee or loss payee. This must match the loan documents character for character. Common errors:

• Using "Bank of America" instead of "Bank of America, N.A."
• Using a branch name instead of the entity holding the loan
• Using an outdated name after a bank acquisition (Wells Fargo acquired Wachovia; any certificate still showing Wachovia after the merger is wrong)
• Using a DBA instead of the legal entity name

Request the exact mortgagee designation from the lender's closing instructions. Do not guess from prior certificates.

Mailing Address. The mortgagee's insurance tracking address - typically a centralized processing center, not the branch. Most large lenders route insurance certificates through dedicated insurance processing departments. Using the branch address causes misdirection and delays.

Nature of Interest. Three options with distinct legal meanings:

Mortgagee. For real property lenders under a standard mortgage clause. The standard mortgage clause (ISO form CP 12 18 or the equivalent clause embedded in the property form) protects the mortgagee even if the named insured's coverage is voided by fraud, concealment, or other acts. This is the strongest protection available under a property policy. The standard mortgage clause is a policy document - it does not appear on the certificate. An ACORD 27 listing a party as "mortgagee" without CP 12 18 on the policy creates a representation the policy does not back.

Loss Payee. For equipment lenders and lessors financing personal property - vehicles, machinery, computers. A loss payee receives claim payments up to their interest under a standard loss payable clause (ISO CP 12 03). Unlike a mortgagee under a standard mortgage clause, a loss payee's interest can be voided if the named insured commits fraud or material misrepresentation.

Additional Insured. Grants coverage under the policy for liability claims. This designation does not belong on an ACORD 27 in most property lending contexts. It is appropriate when the certificate holder needs liability coverage rights - for example, a landlord requiring a tenant to cover the landlord's liability arising from the tenant's operations.

ISAOA / ATIMA Language. ISAOA stands for "Its Successors and/or Assigns." ATIMA stands for "As Their Interests May Appear." Mortgage loans are sold on the secondary market routinely - Fannie Mae, Freddie Mac, private securitization. Without ISAOA, the standard mortgage clause protection is tied to the specific named entity. If the loan is sold before a loss, the new holder's protection is uncertain.

The standard mortgagee designation that lenders require: "[Lender Legal Name], ISAOA/ATIMA, [Centralized Insurance Address]." Both terms must appear. "ISAOA" alone or "ATIMA" alone is insufficient. Omitting both is the most common single error on commercial property certificates.

How ACORD 27 Differs from a Declarations Page

The declaration-page is a policy document. ACORD 27 is a summary certificate. The differences have consequences in three areas.

Authority. The declarations page is the authoritative source of policy terms. If the certificate shows a $2,000,000 limit and the declarations page shows $1,800,000, the policy controls. The certificate does not grant additional coverage. An agent who overstates limits on a certificate to satisfy a lender requirement creates a material misrepresentation that exposes the agency to E&O claims when the gap is discovered at loss.

Detail. The declarations page contains the full endorsement schedule, the list of exclusions, coinsurance terms, valuation basis, and all policy conditions. ACORD 27 shows a subset of this. A lender relying only on the certificate does not know whether the policy has a named storm deductible, a flood exclusion, or a coinsurance clause at 80%. These gaps matter after a major loss.

Mortgagee Rights. The standard mortgage clause that protects lenders appears in the policy, not on the certificate. The actual rights - protection from the named insured's acts, right to cure premium default, right to receive loss payment directly - come from ISO CP 12 18 or equivalent language embedded in the carrier's form. The certificate references the mortgagee's position; the policy creates and defines it.

Some institutional lenders now require both ACORD 28 and a copy of the policy declarations to confirm the full coverage picture. CMBS lenders routinely request the declarations and key endorsements at loan origination.

When Lenders Require ACORD 27 - and What They Check

Commercial lenders require evidence of property insurance at three points: loan origination, annual renewal, and when any policy change affects the collateral.

At origination, lenders verify six items:

1. Named insured matches borrower of record
2. Property address matches collateral
3. Coverage type is Special Form (or the lender's required form)
4. Coverage limit meets or exceeds required insured value
5. Mortgagee is correctly listed with ISAOA/ATIMA
6. Policy expiration extends at least 30 days beyond the closing date

SBA Lenders. SBA SOP 50 10 7.1 governs insurance requirements for 7(a) and 504 loans. The SBA requires Special Form coverage, deductibles no greater than $10,000, and coverage equal to at least the lesser of the loan balance or replacement cost. SBA lenders are stricter than conventional lenders on every field. A Basic Form notation or a $25,000 deductible on an SBA certificate generates an immediate compliance hold.

CMBS Lenders. Commercial Mortgage-Backed Securities lenders apply the most rigorous standards. CMBS loan documents typically require coverage with a carrier rated A-/VIII or better by A.M. Best, replacement cost valuation, and no coinsurance clause. The ACORD 27 must reflect the carrier's A.M. Best rating, or the lender requires a separate carrier rating letter. CMBS lenders also typically require a co-insurance waiver or agreed value endorsement, which the certificate should note.

Fannie Mae / Freddie Mac Multifamily. Agency lenders follow their own guidelines for multifamily collateral. Fannie Mae's Multifamily Selling and Servicing Guide (updated 2025) requires Special Form coverage, agreed value or replacement cost without coinsurance, and flood coverage for properties in FEMA Special Flood Hazard Areas regardless of whether the lender requires it under the Flood Disaster Protection Act. Agencies handling multifamily certificates should have the current Fannie Mae/Freddie Mac guides on hand.

The Five Most Common ACORD 27 Errors

Error 1: Wrong property address. The certificate shows the named insured's mailing address or a different insured location instead of the specific collateral property. The lender cannot match the certificate to their collateral record. The fix: pull the insured location schedule from the declarations page before issuing every certificate.

Error 2: Wrong mortgagee name. The name on the certificate does not match the loan documents. Common causes: using the acquiring bank's name after a merger, using a branch name instead of the legal entity, omitting "N.A." from a national bank's name. The fix: request the exact mortgagee designation from the lender's closing instructions. Do not copy from a prior certificate.

Error 3: Missing loss payee designation. An equipment lender is listed as "mortgagee" instead of "loss payee," or is omitted entirely. For non-real-property collateral (vehicles, machinery, equipment), the correct designation is loss payee under ISO CP 12 03 - not mortgagee under CP 12 18. The fix: identify whether the collateral is real property or personal property before completing the additional interest section.

Error 4: Wrong coverage type. The certificate shows Basic Form or Broad Form when the policy - and the lender's requirement - calls for Special Form. This happens when the producer issues the certificate without reviewing the current policy. A lender that discovers Basic Form coverage after closing may declare the borrower in default. The fix: pull the current declarations page before every certificate, without exception.

Error 5: Missing or incomplete ISAOA/ATIMA. The mortgagee appears without ISAOA/ATIMA, or one term appears without the other. Lenders on the secondary market can reject a certificate that omits this language because their mortgage servicing rights may not be protected. The fix: include both terms - "ISAOA/ATIMA" - in full for every mortgagee designation, every time.

Field-by-Field ACORD 27 Checklist

ACORD 27 and E&O Exposure

The most dangerous ACORD 27 scenario is a certificate that represents coverage the policy does not provide. Three specific situations generate claims.

Scenario 1: Coverage type downgraded without certificate update. An agency issues ACORD 27 showing Special Form coverage. Mid-term, the carrier endorses the policy to Basic Form after a large property claim. The agency renews the certificate at expiration without checking the current form. The property suffers a covered loss under Special Form but excluded under Basic Form. The gap is discovered in the claim - and the agency's certificate created the lender's expectation of broader coverage than the policy delivers.

Scenario 2: Mortgagee clause endorsement missing. The agency lists a lender as "mortgagee" on the certificate, but ISO CP 12 18 (Standard Mortgage Holders Errors and Omissions endorsement) was never added to the policy. After a total loss, the carrier voids coverage due to the named insured's concealment. Under a true standard mortgage clause (backed by CP 12 18), the mortgagee's interest survives that voiding. Without CP 12 18, the mortgagee has no direct claim right. The certificate created an expectation the policy could not fulfill.

Scenario 3: Coverage limit overstated. The agent shows $2,000,000 in building coverage to satisfy a lender requirement. The actual policy limit is $1,600,000. After a major loss, the claim payment is $1,600,000. The lender has a gap of $400,000 against their collateral. The agency's certificate created the reliance that caused the underinsurance to go undetected.

All three scenarios are preventable with a policy review at every certificate issuance. For agencies handling large commercial property books, see certificate accuracy workflows and lender-required endorsements for commercial property.

Frequently Asked Questions

What is ACORD 27 used for?

ACORD 27 (Evidence of Property Insurance) confirms to lenders, landlords, equipment lessors, and government agencies that a property insurance policy is in force for a specific location. Mortgage lenders require it at loan origination and at each annual renewal. It is not a policy document and does not alter coverage terms.

What is the difference between ACORD 27 and ACORD 28?

ACORD 27 is a general-purpose evidence of property insurance form suitable for landlords, equipment lessors, and non-lender parties. ACORD 28 (Evidence of Commercial Property Insurance) is designed specifically for mortgage lenders and includes a loan number field, dedicated mortgage clause language, and expanded mortgagee rights fields. Institutional lenders, CMBS lenders, and SBA lenders typically prefer ACORD 28.

What does ISAOA/ATIMA mean on a certificate?

ISAOA stands for "Its Successors and/or Assigns." ATIMA stands for "As Their Interests May Appear." Together, they protect mortgage lenders whose loans may be sold on the secondary market. Without these terms, the standard mortgage clause protection may not transfer automatically to the entity that acquires the loan. Both terms must appear together in the mortgagee designation.

What is the difference between mortgagee and loss payee on ACORD 27?

A mortgagee is a real property lender protected under a standard mortgage clause (ISO CP 12 18). The standard mortgage clause protects the mortgagee even if the named insured voids coverage through fraud or concealment. A loss payee is used for equipment lenders and lessors - they receive claim payments under a standard loss payable clause (ISO CP 12 03), but their interest can be voided by the named insured's fraud. Real property = mortgagee. Personal property and equipment = loss payee.

Can ACORD 27 substitute for the declarations page?

No. ACORD 27 is a summary certificate. It does not contain the full endorsement schedule, exclusions, coinsurance terms, or conditions. The declarations page controls when the two conflict. Lenders that rely only on ACORD 27 are operating with incomplete information about their collateral protection. CMBS and institutional lenders now routinely require both ACORD 28 and a copy of the current declarations page at origination.

What happens when ACORD 27 contains an error?

A material error - wrong address, wrong coverage type, wrong mortgagee name - causes the lender to reject the certificate and require reissuance. If the error surfaces after a loss, the consequences escalate. An agency that overstated coverage limits, misrepresented the coverage form, or listed a mortgagee without the backing CP 12 18 endorsement faces E&O claims. The defense depends on whether the agency can show the certificate matched the policy at issuance.

---

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

Issue ACORD 27 without errors. BrokerageAudit's ACORD Form Library gives producers field-by-field guidance on ACORD 27 and ACORD 28, a pre-issuance checklist that catches the five most common lender certificate errors, and a library of current ACORD forms. Access the ACORD Form Library