ACORD 38 (Evidence of Insurance Request)
A standard ACORD form used to request evidence of commercial property insurance from a broker, typically by a mortgagee or lender.
What It Is
The ACORD 38 is a standardized request form used by mortgagees, lenders, and other interested parties to request evidence of commercial property insurance from a broker or insurer. The form specifies the type of evidence needed (ACORD 27 or ACORD 28), the coverage requirements of the requesting party, and any special conditions such as loss payee status.
This form streamlines the evidence of insurance process by providing brokers with all the information they need to issue the correct documentation in a single request. It replaces informal email or letter requests that often lack critical details.
The ACORD 38 is commonly used in commercial real estate transactions where lenders require proof of insurance before funding a loan or mortgage.
Why It Matters for Brokers
Lender insurance requirements are often the bottleneck in commercial real estate closings. When a broker receives an ACORD 38, they need to respond quickly and accurately to avoid delaying the transaction. Brokerages that have efficient ACORD 38 processing workflows can turn evidence of insurance requests around in hours rather than days, adding significant value to their real estate clients.
Real-World Example
A commercial mortgage lender sends an ACORD 38 to a broker requesting evidence of property insurance for a $12M office building the bank is financing. The request specifies ACORD 28 format, requires the lender to be listed as loss payee, requires building coverage of at least $12M at replacement cost, and requires a 30-day notice of cancellation. The broker issues the ACORD 28 with all specifications the same afternoon.
Common Mistakes
- 1Confusing the ACORD 38 request with a certificate of liability insurance request and issuing an ACORD 25 instead of an ACORD 28.
- 2Not matching the loss payee name and address exactly as specified on the ACORD 38, causing the lender to reject the evidence.
- 3Failing to note the 30-day cancellation notice requirement, which may require a policy endorsement if not already included.
How brokerageaudit.com Handles This
BrokerageAudit processes ACORD 38 requests through a dedicated lender evidence workflow that auto-generates the correct evidence form (ACORD 27 or 28) with the lender's exact requirements pre-populated.