ACORD Forms

The Evidence of Commercial Property Insurance (ACORD 28) provides a coverage statement for mortgagees, additional insureds and loss payees who provide mortgages or loans on real property or business personal property insured under a Commercial Lines policy. Often, the form replaces the need to send a complete policy to banks, savings and loans and other lenders, as well as other additional insureds named in the policy.

Insurance coverage on commercial property can have many variables. Coverages, coinsurance percentages, deductibles and other details can vary widely and are important considerations to mortgages and other lenders. In addition, The Terrorism Risk Insurance Act and the recent increase in exposure to mold losses have resulted in a greater need to know more about the specific terms of the insurance contract.

ACORD 28 provides check boxes and pre-printed text to clarify important insurance details. The intent is to reduce ambiguity and eliminate follow-up conversations and correspondence with respect to missing information that is required in most cases involving commercial real estate.

The purpose of ACORD 28 is significantly different from the Certificate of Property Insurance (ACORD 24). Like the Certificate of Insurance, ACORD 28 summarizes coverages currently in force on a policy. However, it differs by conveying to the holder of the form all rights that go with the policy, including notice of cancellation. These "rights" apply only to individuals identified on the policy. In creating this form, ACORD received input from the Mortgage Bankers Association of America, the Council of Insurance Agents and Brokers, many insurance companies and several individual agents.


IMPORTANT

Use ACORD 28 to provide information about physical damage coverage to loss payees in connection with an auto loan when the vehicle is being purchased and coverage is being provided under a Commercial Lines policy. Use ACORD 23, Leased Auto Certificate of Insurance in lieu of ACORD 28 to provide information to the owner of a leased motor vehicle or the lender about both liability and physical damage coverages applying to the vehicle when the coverage is being provided under a leased auto coverage form. Use ACORD 27, Evidence of Personal Property Insurance, to provide information to mortgagees, additional insureds and loss payees who provide mortgages or loans on real property or personal property insured under a Personal Lines policy.

IDENTIFICATION SECTION

Producer Name, Contact Person and Address
Producer's name, name of a contact person at the agency, and the agency's address.

Phone (A/C, No, Ext)
Producer's telephone number.

Fax (A/C, No,)
Producer's facsimile number.

E-Mail Address
Producer's e-mail address.

Code
Identification code assigned to the agency or brokerage firm by the insurance company providing the policy coverages.

Subcode
If the agency uses a sub-code identification system with the company, enter the appropriate code.

Agency Customer ID
Customer's identification number assigned by the agency.

Named Insured and Address
Insured's name and address as they appear on the policy declarations page.

Additional Named Insured(s)
Additional Insured(s) name as they appear on the policy declarations page.

Company Name and Address
Name and address of the applicable insurance company. Use the actual name of the company within the group to which the policy has been issued. Do not use group names.

NAIC No.
Indicate the insurance company's NAIC number.

Loan Number
Insured's loan or account number for this additional interest.

Policy Number
Number exactly as it appears on the policy, including prefix and suffix symbols.

Effective Date
Date on which the terms and conditions of the policy commence.

Expiration Date
Date on which the terms and conditions of the policy expires.

Continued Until Terminated if Checked
If the policy is issued on a Continuous basis, check the available box.

This Replaces Prior Evidence Dated
If a prior Evidence of Property Insurance was issued to this additional interest and this form replaces the old one, enter the date the old form was issued; otherwise, leave this field blank.

PROPERTY INFORMATION

Location/Description
For buildings, provide the street address and a brief description of the occupancy of the building (e.g., 123 Johnstone Ave, Endicott - Grocery Store with Apartments, or Route 66, five miles south of intersection with I99 - Tobacco Barn).

For other property items, such as inland marine equipment (for lessor information), describe the item along with any available vehicle identification number or serial number (e.g., 82 Case Backhoe Model H-15, Ser # G5963a57).

COVERAGE INFORMATION

Cause of Loss Form
Check box to indicate type of Loss Form used, if applicable.

Commercial Property Coverage Amount of Insurance
Amount of insurance for the associated coverage.

Deductible
Deductible for the associated coverage.

Business Income/Rental Value
If the mortgage or loan agreement requires either Business Income or Rental Value coverage, indicate the applicable limit, or the number of months of coverage if coverage is provided on an "actual loss sustained" basis.

Blanket Coverage
If yes, indicate amount of insurance on properties identified in the Property Information section.

Terrorism Coverage
Attach signed Disclosure Notice.

Terrorism Coverage - Is coverage provided for "Certified Acts" only?
If yes, indicate the sub-limit for this coverage and the applicable deductible.

Terrorism Coverage - Is coverage a "stand alone" policy?
If yes, indicate the limit for this coverage and the applicable deductible.

Terrorism Coverage - Does coverage include domestic terrorism?
If yes, indicate the sub-limit for this coverage and the applicable deductible.

Coverage for Mold
If yes, indicate the limit for this coverage and the applicable deducible.

Mold Exclusion
If yes, specify the organization's form used.

Replacement Cost
Check the appropriate box.

Agreed Amount
Check the appropriate box.

Co-insurance
If yes, indicate percent.

Equipment Breakdown (If applicable)
If yes, indicate the limit for this coverage and the applicable deductible.

Law and Ordinance - Coverage for loss to undamaged portion of building
If yes, indicate the limit for this coverage and the applicable deductible.

Law and Ordinance - Demolition Costs
If yes, indicate the limit for this coverage and the applicable deductible.

Law and Ordinance -Incr. Cost of Construction
If yes, indicate the limit for this coverage and the applicable deductible.

Earthquake (If applicable)
If yes, indicate the limit for this coverage and the applicable deductible.

Flood (If applicable)
If yes, indicate the limit for this coverage and the applicable deductible.

Wind/Hail (If separate policy)
If yes, indicate the limit for this coverage and the applicable deductible.

Permission to waive subrogation prior to loss
Check the appropriate box.


REMARKS

Remarks
Space for any additional comments or to list any special conditions that may exist upon the policy.

CANCELLATION

Unlike the Certificate of Insurance, the Evidence of Commercial Property Insurance gives the additional interest certain rights in accordance with the policy provisions. This includes the right to receive a written notice in case of policy termination.

Number of Days
Number of days before cancellation that the additional interest will be notified prior to termination of the policy (e.g., 10 days).

ADDITIONAL INTEREST

Name and Address
Name and address of the additional interest.

Nature of Interest
Indicate the type of interest by checking the appropriate box. Available options are: Mortgagee and Loss Payee. Use the optional spaces to enter any other type of interest.

Lender Servicing Agent Name and Address
The name and address of the servicing agent for the mortgagee or other lender.

Authorized Representative
This form should be signed by an authorized representative of the issuing company.

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