The ACORD 27 is the evidence of property insurance form. It confirms that a policy covers a specific location or item of property, names the interested party (a lender, lessor, or landlord), and states the coverage and limits. Its commercial counterpart with more detail is the ACORD 28.
Most certificate reviews in a commercial building deal with liability, so the ACORD 25 gets the attention. Property coverage is the other half of the insurance clause in a lease, and it shows up on a different form.
What the ACORD 27 evidences
The form, published by ACORD, states that a property insurance policy is in force for a described location or item, lists the coverages and limits, and names an additional interest such as a lender or lessor. Like the ACORD 25, it is issued as a matter of information only and confers no rights on the interested party; it does not replace the policy or the endorsements.
ACORD 27 versus ACORD 28
Both forms evidence property insurance. The ACORD 28, Evidence of Commercial Property Insurance, adds commercial coverage detail such as business income, extra expense, ordinance or law, and equipment breakdown. Compliance guides such as illumend's explainer on the ACORD 27 describe the 27 as the general-purpose evidence form and the 28 as the commercial-detail version. For a retail or office tenant whose lease requires property coverage on improvements and contents, the 28 usually answers the reviewer's questions with fewer follow-ups.
Where it appears in property operations
Three situations call for the form: a tenant fit-out where the lease requires the tenant to insure its improvements, an equipment or signage lease where the landlord is a loss payee, and a lender's periodic request for evidence that the building itself is insured. In each case the reviewer checks the same things as on a liability certificate: the named insured, the location description, the dates, the limits, and that the interested party is named exactly as the lease or loan document requires.
Related terms
Frequently asked questions
What is the difference between ACORD 25 and ACORD 27?
The ACORD 25 summarizes liability coverages: general liability, auto, umbrella, workers compensation. The ACORD 27 is evidence of property insurance for a specific location or property. A tenant improvement clause or an equipment lease usually calls for the 27 or 28; a vendor contract calls for the 25.
When should a landlord ask for an ACORD 27 or 28?
When the lease requires the tenant to insure its own improvements, fixtures, inventory, or business interruption, and the landlord or lender wants written evidence. The form names the landlord or lender as an additional interest, loss payee, or mortgagee as the lease specifies.
Is the ACORD 27 different from the ACORD 28?
Yes. Both evidence property coverage, but the ACORD 28, Evidence of Commercial Property Insurance, carries more detail on commercial coverages such as business income, ordinance or law, and equipment breakdown. Reviewers of commercial leases usually prefer the 28 for that reason.