ACORD 28 (Evidence of Property Insurance)

Overview

The ACORD 28 form, titled "Evidence of Commercial Property Insurance," is a standardized certificate used to document commercial property insurance coverage. While the ACORD 25 is the standard form for liability coverages (general liability, auto, workers' comp, umbrella), the ACORD 28 serves the same purpose for property coverages — providing a summary of coverage to a third party without modifying the underlying policy.

How It Works

The ACORD 28 is structured to capture the key details of a commercial property insurance program:

• Property insured: Description and location of the covered building(s) or premises
• Coverage form: Whether the policy is written on a basic, broad, or special (all-risk) form
• Covered property: Building, business personal property, tenant improvements, and other insured items
• Coinsurance: The percentage the insured must maintain relative to the property's value
• Valuation method: Replacement cost or actual cash value
• Deductible: The insured's out-of-pocket amount before coverage applies
• Covered perils: The causes of loss included in the policy
• Special coverages: Business income, extra expense, ordinance or law, equipment breakdown
• Mortgage/loss payee: The party (typically a lender) with a financial interest in the property
• Additional interest: Other parties who should be notified of policy changes

The form also includes fields for inland marine coverages such as builders risk, installation floaters, and equipment floaters, making it the appropriate form for evidencing these property-related coverages.

Compliance Relevance

The ACORD 28 is essential in property-focused compliance scenarios:

• Lender requirements: Mortgage lenders require evidence of property insurance naming them as loss payee. The ACORD 28 is the standard document for this purpose.
• Lease requirements: Landlords may require tenants to provide an ACORD 28 showing tenant improvement coverage and naming the landlord as additional interest
• Builders risk verification: Construction projects require ACORD 28 forms to evidence builders risk coverage, which cannot be properly documented on an ACORD 25
• Inland marine coverages: Installation floaters, equipment floaters, and other property coverages are documented on the ACORD 28
• Property valuation: The form captures valuation method and coinsurance, which are critical for ensuring adequate coverage

Compliance platforms should support ACORD 28 intake and parsing alongside ACORD 25, as many vendor relationships require both liability and property insurance verification.