ACORD 27 (Evidence of Property Insurance)

Overview

The ACORD 27 form, titled "Evidence of Property Insurance," is a standardized certificate used to provide proof of property insurance coverage. While similar in purpose to the ACORD 28, the ACORD 27 is a simpler form typically used for residential properties and smaller commercial risks. It is most commonly requested by mortgage lenders, who require evidence that the property securing their loan is adequately insured.

How It Works

The ACORD 27 captures the essential details of a property insurance policy in a more streamlined format than the ACORD 28:

• Named insured: The property owner who holds the insurance policy
• Property location: The address of the insured property
• Policy information: Carrier name, policy number, and policy period
• Coverage amount: The total insured value of the property
• Deductible: The amount the insured must pay out of pocket before coverage applies
• Perils covered: The causes of loss included (fire, wind, theft, etc.) or whether the policy is written on a special/all-risk form
• Mortgage clause: The name and address of the mortgagee (lender) who is to receive loss payments and cancellation notices
• Loss payee: The party designated to receive claim payments, usually the lender

The ACORD 27 is primarily a lender-facing document. When a property is purchased or refinanced, the lender requires this form to confirm that property insurance is in place and that the lender is properly listed in the mortgage clause. The insurance agent generates the form and sends it directly to the lender.

Compliance Relevance

The ACORD 27 intersects with COI compliance in specific real estate contexts:

• Lender compliance: Property owners must maintain property insurance with the lender named as mortgagee. The ACORD 27 is the standard evidence document for this requirement.
• Portfolio property tracking: Property management companies managing multiple buildings need to track ACORD 27 forms for each property's lender
• Tenant-owned properties: In scenarios where tenants own their units (condominiums), the association or lender may require ACORD 27 forms from individual unit owners
• Force-placed insurance risk: If a property owner fails to maintain coverage evidenced by an ACORD 27, the lender may force-place insurance at a significantly higher cost
• Closing requirements: Real estate transactions require ACORD 27 forms as part of the closing package

While the ACORD 27 is less common in vendor compliance (where the ACORD 25 and 28 dominate), compliance platforms serving the real estate industry should support its intake and tracking as part of property-level insurance management.