How to Complete the ACORD 27 Certificate of Insurance

What Is an ACORD 27 and Who Asks for It?

The ACORD 27 is a one-page summary of a property policy, issued to someone with a financial stake in the property or its contents. That party is usually a mortgage lender, a bank holding a loan on equipment, or a landlord named in a lease agreement. The form tells them the coverage exists, what it covers, and when it ends.

Requests often arrive right before a loan closing on a home or commercial real estate. If property damage occurs, the lender expects to be paid for its share of the loss, so it wants proof of insurance protection before it funds the loan. Getting ACORD 27 insurance evidence out quickly and correctly keeps the closing on schedule.

What Is ACORD Insurance? The Organization Behind the Form

When people search for this term, they usually mean the organization, not a type of coverage. ACORD (Association for Cooperative Operations Research and Development) is a nonprofit that publishes standardized forms and data standards for the insurance industry. It is not an ACORD insurance company and does not write policies. The forms carry the ACORD Corporation copyright line at the bottom.

Because every carrier and agency uses the same layout, a lender reading an ACORD 27 knows exactly where to find the dates, limits, and deductible. That shared layout is the main value of ACORD insurance forms for agencies, carriers, and recipients.

How to Fill Out ACORD 27, Section by Section

The form goes to a third party who relies on it, so every box matters. Only the agency that placed the policy should issue it, and the signer must be authorized to do so. You can download a fillable ACORD 27 PDF to follow along.

Agency, Insured and Carrier Details

At the top left, the Agency box holds the producer agency's name, full address, phone, fax, and email. Below it, enter the named insured exactly as it appears on the declarations, with a complete mailing address. Spelling the insured party differently from the policy is a common reason a lender rejects the form.

To the right, list the insurance carrier and the policy number (unlike the ACORD 25 and ACORD 28, the ACORD 27 has no NAIC number field). Then enter the policy effective dates: the effective date and the expiration date, which together mark the policy period. Enter the lender's loan number if you have it. Check "continued until terminated" when the policy renews continuously, so the lender knows coverage stays in force until a cancellation notice is sent. If this form replaces earlier evidence, enter the date of the prior form.

Property Information

The property information section describes what is insured. For a building, give the full location address and a short description with occupancy and use, such as "two-story frame dwelling, owner occupied." Match the address to the lender's loan file exactly. When the form covers something other than a building, describe the item instead. For equipment, include the year, make, model and serial number so the lender can tie the coverage to its collateral.

Coverage Information and Remarks

This section lists the coverage provided, the perils insured (Basic, Broad or Special) and the policy form numbers. In the right columns, enter the amount of insurance and the deductible for each item.

List each coverage on its own line. A building coverage line and a contents line should each show their own amount, so the lender sees the coverage amounts that apply to its interest. Copy coverage limits and deductible amounts from the current declarations, never from an old insurance quote.

The remarks section holds special provisions, such as a windstorm deductible that differs from the all other perils deductible. Keep remarks factual. Never use this box to promise coverage the policy does not provide, because the form cannot add or change coverage.

Lender Details and Signature

The additional interest block names the lender or other party and their full mailing address. Check the box that matches their role: mortgagee, loss payee, lender's loss payable or additional insured. The difference matters on a claim, as this guide to lender's loss payable and loss payee clauses explains. Add the loan number again if one applies.

The authorized representative then signs. Lenders care about policy cancellation because missed premium payments can end coverage, but in current editions, the cancellation wording points back to the policy provisions. Do not promise a lender extra notice that the policy itself does not give.

ACORD 27 vs ACORD 25, ACORD 28 and ACORD 24

The ACORD 27 is one of several ACORD forms that show coverage to a third party. Sending the wrong one is a common cause of rework.

• ACORD 25: The ACORD 25 form is the ACORD liability insurance certificate, formerly the Certificate of Liability Insurance. It shows general liability, commercial auto liability, and workers' compensation, plus additional insured and waiver of subrogation status.
• ACORD 28: the Evidence of Commercial Property Insurance. It adds detail commercial lenders want, such as business income (often called business interruption insurance) and valuation checkboxes.
• ACORD 24: the Certificate of Property Insurance, for when the certificate holder needs information about property coverage but has no lender's interest in it.

An owner who needs property insurance coverage shown to a lender gets an ACORD 27 or the commercial version. A client who needs liability insurance coverage shown to a project owner gets an ACORD 25. Our guide to completing the ACORD 25 certificate of liability covers that form, and the ACORD 125 guide covers the commercial application. A general contractor asking for contractor insurance proof almost always wants the ACORD 25.

Common ACORD 27 Mistakes, With a Hypothetical Example

Here is an illustrative case. A bank financing a client's warehouse asks for evidence on the building and the inventory inside it. The CSR issues one ACORD 27 showing the address, Special Form perils, the building limit, and the contents limit, with the bank named in the lender box.

Before sending it, the CSR confirms the carrier actually endorsed the policy to add the bank. Listing the bank on the form without that endorsement would leave the lender with paperwork but no rights under the insurance policy. Most rejected forms come back for a few reasons:

1. The insured's name or property address does not match the lender's file exactly.
2. The lender's name, address, or loan number is missing or out of date.
3. The form lists a lender that was never added to the policy by endorsement.
4. The dates show an expired term because nobody reissued the form at renewal, and the insurance agent never heard about it.

That last point is where coverage lapses get noticed. Lenders track renewals, and a missing renewal form can trigger a force-placed policy and a call from an upset client.

Most ACORD forms, including this one, should pre-fill from your agency management system, saving time and reducing typing errors. Keep a copy of every ACORD 27 you issue in the client file. Good insurance documentation supports insurance compliance, COI tracking, and later claims processing if the lender's interest is questioned.

Before you hit send, compare the form to the current declarations one last time. Clear, accurate evidence of property insurance answers the lender's insurance verification on the first try and keeps your client's loan moving.