ACORD 28
The standard evidence of commercial property insurance form used to verify property coverage details for lenders, landlords, and other interested parties.
What It Is
The ACORD 28, titled Evidence of Commercial Property Insurance, is the standardized form used to provide evidence of commercial property coverage to interested parties, most commonly lenders and mortgagees. It contains detailed information about the property being insured, including the location, building description, coverage amounts, valuation method (replacement cost vs. actual cash value), deductibles, and named perils or special form coverage.
The ACORD 28 includes sections for the mortgagee/loss payee information, which is critical for lenders who need to verify that their interest is protected. It also shows whether the policy includes agreed amount, business income coverage, and specific peril coverage like flood and earthquake.
Unlike the ACORD 25 (which covers liability lines), the ACORD 28 is specifically designed for property coverage and provides the level of detail that lenders and property interest holders require to verify adequate protection of their collateral.
Why It Matters for Brokers
Lenders require ACORD 28 forms as a condition of commercial real estate financing. An inaccurate or incomplete ACORD 28 can delay loan closings, trigger force-placed insurance requirements, or create compliance issues with loan covenants. Brokers handling commercial property accounts must be able to produce accurate ACORD 28 forms promptly, especially during closing periods when delays cost the client money.
Real-World Example
A commercial real estate investor is refinancing a $4.5M warehouse. The lender requires an ACORD 28 showing building coverage of at least $4.5M on a replacement cost basis with the lender listed as mortgagee. The broker issues the ACORD 28 but enters the coverage amount as $3.8M — the building's actual insured value based on a recent appraisal. The lender rejects the certificate because the coverage is below the loan amount. The broker must work with the carrier to increase the building limit to $4.5M before the closing deadline, adding $1,200 in additional premium and nearly delaying a $4.5M loan closing.
Common Mistakes
- 1Confusing ACORD 28 (commercial property) with ACORD 27 (evidence of property insurance for homeowners) and sending the wrong form to the lender.
- 2Listing the wrong loss payee or mortgagee clause language — lenders have specific requirements for how their interest must be shown.
- 3Not including deductible information on the ACORD 28, which many lenders require to verify compliance with loan covenant deductible maximums.
How brokerageaudit.com Handles This
COI Manager generates ACORD 28 forms with coverage data pulled directly from Policy Checker-verified property policies. It maintains a database of lender-specific requirements — including mortgagee clause language, minimum coverage thresholds, and deductible maximums — to ensure compliance. The system flags any policy where the coverage amount is below the loan amount on file.