ACORD 28 — Evidence of Commercial Property Insurance

Edition 2016/03 · PDF format

Required by banks and commercial lenders to verify that a property has appropriate commercial insurance coverage. Includes policy information, effective dates, coverage limits, and loss payee details.

What is ACORD 28?

ACORD 28 (Evidence of Commercial Property Insurance) is the lender-preferred form for documenting commercial property coverage. Most banks, life insurance companies, and CMBS servicers explicitly require ACORD 28, not ACORD 24, when closing or servicing commercial mortgages.

The form is more comprehensive than the simpler ACORD 24 certificate. It captures coverage form, valuation basis, deductible, coinsurance, blanket vs. scheduled limits, and detailed mortgagee/loss payee instructions.

Who needs this form

Commercial real estate lenders, CMBS servicers, life insurance company lenders, equipment finance companies, and any institutional party with a security interest in commercial property.

When to use it

Use at commercial loan closing, refinancing, and on demand by the loan servicer (typically annually at policy renewal).

Key Fields on ACORD 28

The information the form captures, in the order it typically appears:

Producer information
Named insured and mailing address
Carrier and policy number
Policy term (effective and expiration)
Property location(s)
Coverage type, form (Special/Broad/Basic), valuation (RC/ACV)
Coverage limits, deductible, coinsurance percentage
Blanket vs scheduled limits
Additional Interest: lender name, address, loan number, mortgagee/loss payee designation
Special remarks (waiver of subrogation, ordinance and law, etc.)

Common Mistakes

Recurring errors that delay processing or expose brokers to E&O claims:

Wrong loss payee designation

Lenders require either 'Mortgagee' or 'Loss Payee' designation depending on their security interest. Confirm which the lender requires before issuing.

Forgetting the loan number

CMBS servicers track properties by loan number. Omitting it causes the certificate to be filed against the wrong loan or rejected.

Citing blanket limits without scheduled values

Some lenders accept blanket limits but require a Statement of Values showing the building value at the lender's specific property. Provide both.

Frequently Asked Questions

Why do banks require ACORD 28 instead of ACORD 24?

ACORD 28 captures more underwriting detail (coinsurance, coverage form, valuation basis, blanket vs scheduled) that lenders need to confirm coverage adequacy. ACORD 24 is a simpler general certificate without these fields.

Does ACORD 28 evidence rental income or business income coverage?

Yes. Business Income/Rental Value coverage can be added under the coverage section. Most lenders require evidence of 12 months of business income or rents at minimum.

Related ACORD Forms

ACORD 24