How to Complete the ACORD 27: Certificate of Insurance

What Is an ACORD 27?

ACORD forms are standardized forms published by ACORD Corporation, a nonprofit that sets data standards for the insurance industry. Agencies, carriers, and lenders recognize the layout, so they can read and verify information on an ACORD form quickly without calling the agency.

The ACORD 27 provides proof of insurance for property coverage on a home, a building, business personal property, or a specific item of equipment. It names the insured, the insurance carrier, the policy, the location and the coverage amounts, and it lists the party with a financial interest in that property, usually a mortgagee or loss payee.

Most agencies use the ACORD 27 for personal lines property and smaller commercial accounts with a single lender. Like the ACORD 25, the current ACORD 27 says it is issued as a matter of information only and confers no rights on the lender or other interest named on it. It still does not change the terms of the policy, add coverage, or replace the policy itself.

ACORD 27 vs. the ACORD 25 Form and ACORD 28

The ACORD 25 is the certificate of liability insurance. It shows general liability, commercial auto liability, umbrella, and workers' compensation policies to a certificate holder such as a landlord, a general contractor, or a client that requires contractor insurance. A property lender has no use for an ACORD 25 because it does not show property values or the lender's interest.

The ACORD 28 is evidence of commercial property insurance. It has more room for property coverage details, such as business interruption insurance, multiple buildings, and lender provisions, so agencies use it for commercial real estate and larger commercial accounts. The ACORD 24, the Certificate of Property Insurance, is another property insurance form that some certificate holders accept.

A quick rule of thumb: liability goes on the ACORD 25, a single property with a lender goes on the ACORD 27, and complex commercial property with a lender goes on the ACORD 28. When a lease agreement or loan document names a specific form, use that form.

How to Fill Out ACORD 27 Step by Step

Your agency management system should have the current ACORD 27 and fill in most fields from the client record. Treat the prefilled data as a draft and confirm every entry against the policy before you send the form.

Agency, Insured and Policy Information

At the top of the ACORD 27, enter the agency name, address, phone, email, and the agency customer ID if your system uses one. Enter the named insured exactly as it appears on the policy, along with the mailing address.

On the right side, enter the insurance company's full legal name and mailing address (the form has no NAIC number field, unlike the ACORD 25), the policy number, the effective date, and the expiration date. If the policy is written continuously with no fixed end date, check the "continued until terminated" box, and if this ACORD 27 replaces an earlier one, enter that prior date. Add the loan number when the lender provides it.

Property Information

Enter the full address of the location and a short description of the property, including its occupancy and use. A lender wants to see that the address matches the loan file exactly, so copy it from the loan documents rather than retyping it from memory.

If the ACORD 27 is for something other than a building, describe the item instead. For equipment, include the year, make, model, and serial number so the lender can match it to its collateral.

Coverage Information

The coverage information section lists each coverage: the perils insured (basic, broad, or special form), the policy form number, the amount of insurance, and the deductible amounts. Show building coverage, contents, and any other property insurance coverage the lender asked to see, with the coverage limits exactly as they appear on the declarations page. The lender cares most about the property coverage on its collateral, so check that amount twice.

If the lender asks for coverage the policy does not include, such as flood or extra protection for equipment breakdown, do not add it to the ACORD 27. Tell the client, quote the missing coverage, and send the form only after the policy is endorsed.

Remarks Section

Use this area for special provisions that do not fit elsewhere, such as an endorsement number, a waiver of subrogation required by contract, or a note that the lender's clause has been added. Keep remarks short and factual, and never use them to describe coverage the policy does not provide.

Additional Interest and Signature

List the full name and mailing address of the lender, then mark its role: mortgagee, loss payee, lender's loss payable, or additional insured. A lender's clause is often required in the loan agreement, so match the wording the lender sent. Add the loan number again if the form has a field for it.

The authorized representative of the agency signs at the bottom. Send the completed ACORD 27 as a PDF to the client or directly to the lender, save a copy in the client file, and set a reminder to send an updated form at renewal.

Common ACORD 27 Mistakes to Avoid

The most common errors are a name or address that does not match the loan file, an outdated policy period or wrong policy effective dates, and a lender listed in the wrong role. Each can cause a rejected form, a delayed closing, or a letter warning the insured about coverage lapses.

Another frequent problem is sending a stale ACORD 27 after a policy cancellation or a change in coverage. Good COI tracking, renewal reminders, and a quick check of premium payments before you issue the ACORD 27 help prevent insurance verification problems later. Accurate insurance documentation also speeds claims processing, because the adjuster can confirm who must be named on a property damage payment.