ACORD 28 Evidence of Property Insurance: Complete Guide (2026)

The ACORD 28 is the standard form used to verify commercial property insurance coverage. If you manage commercial real estate, require tenants to carry property insurance, or need to confirm building coverage for a lender, the ACORD 28 is the document you'll work with.

While the ACORD 25 gets more attention because it covers liability insurance for vendors and contractors, the ACORD 28 is equally important for property-focused compliance. A missing or inadequate ACORD 28 can leave a building owner exposed to catastrophic loss.

This guide explains every section of the ACORD 28 form, when to use it, how it differs from similar forms, and the mistakes that create real coverage gaps.

What Is an ACORD 28?

The ACORD 28 is a standardized evidence of commercial property insurance form. It provides a summary of property insurance coverage for a specific building, location, or portfolio of assets.

Like the ACORD 25, it's a snapshot — not a policy. It confirms that property coverage existed when the form was issued, but it doesn't modify or guarantee ongoing coverage. Policies can be cancelled, limits can be reduced, and endorsements can be removed after the certificate is generated.

The ACORD 28 is typically requested by property owners and management companies from tenants who are required to carry property insurance under their lease, by lenders and mortgage holders who need confirmation of adequate building coverage, by investors or partners conducting due diligence on a commercial property, and by anyone who needs proof that a specific property or set of assets is insured.

ACORD 28 vs ACORD 27: What's the Difference?

This is one of the most common points of confusion. Both forms deal with property insurance, but they serve different purposes.

The ACORD 28 is the evidence of commercial property insurance. It's used for commercial buildings, tenant improvements, business personal property, and other commercial assets. This is what you'll use in commercial real estate management.

The ACORD 27 is the evidence of personal property insurance — think homeowner's insurance or renter's insurance for residential properties. If you manage residential rentals and require tenants to carry renter's insurance, you'd see an ACORD 27.

The forms have different fields because commercial and personal property policies are structured differently. Commercial policies often have multiple coverage types (building, business personal property, business income), coinsurance clauses, and agreed value endorsements that don't apply to personal lines.

If you're in commercial property management, the ACORD 28 is your form. If you manage residential properties and verify renter's insurance, you'll see the ACORD 27 instead.

How to Read an ACORD 28: Section by Section

Producer Information

The insurance agent or broker who issued the evidence of insurance. Same as the ACORD 25 — this is your contact for verification questions. Legitimate evidence should come from licensed agents, not from the insured party.

Named Insured

The entity that holds the property insurance policy. For tenant-required coverage, this should match the tenant's legal entity name on the lease. For building coverage, this would be the property owner or their holding entity.

Verify the exact legal name matches your records. "Main Street Retail LLC" and "Main Street Retail Inc." are different entities and a mismatch can complicate claims.

Property Information

This section identifies the specific property or location being insured. It includes the property address, description of the building or premises, and sometimes construction type and occupancy details.

For property managers reviewing tenant coverage, confirm that the address matches the leased premises. If a tenant has multiple locations, make sure the certificate specifically references your property — a blanket policy may or may not cover the specific location in question.

Coverage Types and Limits

The ACORD 28 lists several categories of property coverage. The most common include:

Building coverage: Covers the physical structure itself — walls, roof, foundation, permanent fixtures. The limit should reflect the replacement cost of the building, not the market value. This is typically the property owner's responsibility, not the tenant's.

Business Personal Property (BPP): Covers the insured's moveable property — furniture, equipment, inventory, fixtures that aren't permanently attached. For tenant coverage verification, this is usually the most relevant line item. Lease requirements often specify a minimum BPP limit.

Business Income / Extra Expense: Covers lost income and additional expenses if the property becomes unusable due to a covered loss. This is especially important for properties where a tenant shutdown would affect the building's revenue stream.

Tenant Improvements and Betterments: Covers improvements the tenant has made to the leased space. This is distinct from building coverage and BPP — it covers things like built-out office space, custom fixtures, or specialized installations.

Valuation Method

The ACORD 28 indicates how covered property is valued. The two main methods are:

Replacement Cost: The insurer pays the cost to replace damaged property with new property of similar kind and quality, without deducting for depreciation. This is the better option for the certificate holder.

Actual Cash Value (ACV): Replacement cost minus depreciation. This means older property receives a reduced payout. If your lease requires replacement cost coverage and the tenant carries ACV, that's a compliance gap.

Coinsurance

Coinsurance is a clause that penalizes underinsurance. If the policy has an 80% coinsurance clause and the insured carries coverage for less than 80% of the property's value, the insurer will only pay a proportional share of any claim.

This matters for compliance verification because a tenant could carry what appears to be adequate limits, but if they're underinsured relative to the coinsurance requirement, they'll receive reduced claim payments. Look for "Agreed Value" endorsements, which waive the coinsurance penalty — this is preferable.

Deductible

The amount the insured pays before coverage kicks in. Higher deductibles reduce premium costs but increase out-of-pocket exposure. Some leases specify maximum deductible amounts — if your lease says the tenant's deductible can't exceed $5,000 and their policy shows $25,000, that's a compliance issue.

Additional Interest / Certificate Holder

Similar to the ACORD 25, this section identifies who requested the evidence and may include additional interest designations. As a property owner or manager, you want to be listed here so you receive notice of policy changes.

Common designations include "Loss Payee" for lenders with a financial interest in the property, "Mortgagee" for mortgage holders, and "Additional Insured" when the property owner needs to be added to the tenant's policy.

Special Conditions and Endorsements

The description or special conditions area may reference important endorsements such as loss payee clauses specifying how claim payments are distributed, waiver of subrogation in favor of the property owner, agreed value endorsements waiving coinsurance, and any lease-specific requirements.

When Is an ACORD 28 Required?

The most common scenarios that require an ACORD 28 include tenant compliance with commercial leases where the lease requires the tenant to carry property insurance for their business personal property and improvements, mortgage and lending requirements where lenders require evidence that the building carries adequate property coverage as a condition of the loan, property acquisitions and due diligence where buyers verify existing coverage before closing, and insurance program audits for annual reviews of coverage adequacy across a portfolio.

For property managers, the tenant compliance scenario is the most frequent. Most commercial leases include insurance requirements that specify minimum property coverage limits, and the ACORD 28 is the standard proof document.

Common ACORD 28 Compliance Mistakes

Not verifying valuation method

A lease requires "replacement cost" coverage, but the tenant's policy uses "actual cash value." The certificate shows adequate limits, so it looks compliant. But in a loss event, the ACV payout could be 30-50% less than replacement cost for older property. Always check the valuation method, not just the limit number.

Ignoring coinsurance clauses

A tenant carries $200,000 in BPP coverage, meeting the lease requirement. But their property is actually worth $400,000, and the policy has an 80% coinsurance clause. They're insured for 50% of value instead of the required 80%, meaning any claim payment gets proportionally reduced. Look for agreed value endorsements that eliminate this risk.

Accepting building coverage when you need BPP

The ACORD 28 lists both building and BPP coverage. For tenant compliance, you typically care about BPP and tenant improvements — the building coverage is the owner's responsibility. Make sure you're checking the right line item against the lease requirement.

Missing loss payee designation for lenders

If there's a mortgage on the property, the lender almost certainly requires a loss payee designation on the property insurance. If the ACORD 28 doesn't list the lender as loss payee, the building owner may be in default of their loan covenants — even if coverage is otherwise adequate.

Not tracking expiration dates

Same problem as ACORD 25 certificates. Property insurance policies typically renew annually, and if a tenant's coverage lapses without renewal, the property owner has no way of knowing unless they're actively tracking expirations and requesting updated evidence.

ACORD 28 vs ACORD 25: Quick Reference

Use the ACORD 25 when you need to verify a vendor's or contractor's liability insurance — general liability, auto, umbrella, workers' comp. This is for entities performing work on or near your property.

Use the ACORD 28 when you need to verify commercial property insurance — building coverage, business personal property, tenant improvements. This is for entities occupying space or owning assets at a location.

Many compliance programs require both. A tenant might need to provide an ACORD 28 proving their property coverage AND an ACORD 25 proving their liability coverage. A vendor working on a tenant buildout might need an ACORD 25 for their liability coverage while the tenant provides an ACORD 28 for the improvements being made.

For a detailed breakdown of the ACORD 25, see our complete ACORD 25 guide.

Automating ACORD 28 Verification

Manually reviewing ACORD 28 forms across a portfolio of tenants is time-consuming and error-prone — especially when you need to cross-reference each certificate against specific lease insurance requirements.

SmartCOI automates this process. Upload a property insurance certificate and AI extracts every coverage type, limit, valuation method, deductible, and endorsement. The system checks it against your requirements and flags gaps automatically.

You can even upload your tenant leases and SmartCOI will extract the insurance requirements directly from the lease language, building the compliance template for you.

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Frequently Asked Questions

What is the ACORD 28 used for?

The ACORD 28 is used to provide evidence of commercial property insurance. Property owners, lenders, and management companies request it to verify that a building, business personal property, or tenant improvements are adequately insured.

What is the difference between ACORD 27 and ACORD 28?

The ACORD 27 covers personal property insurance (homeowner's, renter's insurance), while the ACORD 28 covers commercial property insurance. Use the ACORD 28 for commercial real estate and the ACORD 27 for residential.

Does an ACORD 28 guarantee that coverage is active?

No. Like all certificates of insurance, the ACORD 28 is a snapshot showing coverage at the time of issuance. The underlying policy can be cancelled or modified after the certificate is generated. Ongoing tracking and renewal verification is necessary for continuous compliance.

What property coverage limits should I require from tenants?

This depends on your lease terms and the tenant's operations. Common requirements include business personal property coverage equal to the full value of the tenant's assets, tenant improvements coverage for any buildouts, and business income coverage for 12 months of estimated revenue. Consult your lease agreement and insurance advisor for specific limits.

Who should be listed as certificate holder on an ACORD 28?

The property owner or management company that requires proof of coverage should be listed as the certificate holder. If there's a mortgage, the lender should be listed as loss payee or mortgagee. The exact entities and designations should match what's specified in the lease or loan agreement.