ACORD 140 (Property Section)
The ACORD supplement form that captures detailed commercial property information including building construction, occupancy, and values.
What It Is
The ACORD 140 is the Property Section supplement to the ACORD 125. It captures detailed building information including construction type, year built, square footage, number of stories, occupancy, protection class, fire and burglar alarm systems, and sprinkler information.
The form also includes sections for business personal property values, business income and extra expense coverage, and any special property coverages like earthquake or flood. Each location is documented separately on the ACORD 140.
This form provides the detailed property data that underwriters need to assess physical hazards, determine construction classification, and calculate adequate insurance-to-value ratios.
Why It Matters for Brokers
Accurate property data directly affects both pricing and claims outcomes. If the ACORD 140 understates the building's square footage or misclassifies the construction type, the resulting policy may have inadequate limits or incorrect coinsurance calculations. Brokers who thoroughly complete the ACORD 140 — including protective safeguards, recent renovations, and accurate replacement cost values — help their clients avoid coinsurance penalties and ensure claims are paid at the expected amounts.
Real-World Example
A broker is submitting a commercial property application for a 30,000 sq ft manufacturing facility. The ACORD 140 documents fire-resistive construction, a fully operational wet-pipe sprinkler system, central station fire and burglar alarms, and a recent roof replacement in 2023. The building replacement cost is $4.2M with $1.8M in business personal property. This thorough documentation earns the client credits for protective safeguards and superior construction.
Common Mistakes
- 1Misclassifying the construction type (e.g., listing masonry non-combustible when the building has wood-frame additions), which affects rates and coverage adequacy.
- 2Failing to document sprinkler systems and alarm credits, causing the client to miss significant premium discounts.
- 3Using original purchase price instead of current replacement cost, resulting in underinsurance and coinsurance penalties at claim time.
How brokerageaudit.com Handles This
Submission Intake validates ACORD 140 data against property databases and flags values that appear inconsistent with the building size and construction type. The platform calculates estimated replacement costs and alerts brokers when reported values may be inadequate.