ACORD Evidence of Insurance
ACORD forms (27 and 28) that provide evidence of property insurance to mortgagees and lenders, distinct from certificates of liability insurance.
What It Is
ACORD Evidence of Insurance forms — the ACORD 27 (Evidence of Property Insurance) and ACORD 28 (Evidence of Commercial Property Insurance) — are documents that provide proof of property insurance coverage to interested third parties, typically mortgagees, loss payees, and lenders.
The ACORD 27 is used for personal lines property (homeowners, dwelling fire), while the ACORD 28 is used for commercial property coverage. Both forms document the insured property, coverage amounts, deductibles, policy period, and the interested party's name and address.
These forms are distinct from the ACORD 25 (Certificate of Liability Insurance), which documents liability coverage. Brokers must use the correct evidence form based on whether the requesting party needs proof of property or liability coverage.
Why It Matters for Brokers
Lenders require evidence of property insurance before closing real estate transactions and throughout the loan term. Brokers who confuse evidence of property insurance forms with liability certificates create delays in closings and compliance issues with lenders. Accurate and timely evidence of insurance is essential for maintaining good relationships with commercial lenders and their loan servicing departments, which increasingly use automated verification systems that reject non-conforming documents.
Real-World Example
A commercial real estate client refinances a $5M office building. The new lender requires an ACORD 28 showing property coverage of at least $5M replacement cost, the lender listed as loss payee, and 30-day notice of cancellation. The broker issues the ACORD 28 with all specifications met and the lender's exact legal entity name, enabling the refinance to close on schedule.
Common Mistakes
- 1Issuing an ACORD 25 (liability certificate) when the lender requested evidence of property insurance (ACORD 27 or 28).
- 2Using the ACORD 27 (personal lines) for a commercial property when the ACORD 28 is the correct form.
- 3Not matching the loss payee clause type (standard vs. lender's loss payable) to the lender's requirements.
How brokerageaudit.com Handles This
BrokerageAudit automatically selects the correct evidence form (ACORD 27 or 28) based on the policy line and pre-populates the lender's requirements from stored certificate holder data. The platform validates that coverage amounts meet the lender's minimum requirements before issuing.