Lenders & Contracts · Insurance Term
ACORD 28 (Evidence of Commercial Property Insurance)
Definition
The ACORD 28, Evidence of Commercial Property Insurance, is the standard form that shows a lender or other interested party what property coverage is in place on a building. It lists the property, limits, deductibles and the lender's interest. It summarizes the policy; it does not change it.
In Plain English
Commercial lenders usually require an ACORD 28 before closing and at every renewal. It describes the location, the coverage limits for building, contents and business income, the deductibles (including wind/hail or named storm deductibles), and the causes of loss form. It also names the lender in a mortgagee clause or as a loss payee.
The lender's real protection comes from the endorsement on the policy, not the form. A properly added mortgagee is commonly entitled to notice before cancellation and may be paid even if the owner breaches certain policy conditions. Those rights depend on the policy wording, so lenders often ask for the endorsement too.
Liability coverage is not shown on the ACORD 28. That goes on the ACORD 25. For a typical commercial loan, expect to deliver both.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: an investor refinances a $3,000,000 office building. Two weeks before closing, the lender's insurance reviewer asks for an ACORD 28 showing replacement cost building coverage of at least the loan amount, 12 months of rent loss, and the lender named as mortgagee with its exact loan clause wording.
Why It Matters for Texas Property Owners
Texas law treats a certificate of insurance as information only; it does not alter the referenced policy (Texas Insurance Code §1811.152). For coastal Texas buildings, lenders also look closely at how wind is covered, because wind may be excluded on the main policy and insured separately, sometimes through TWIA.
What to Watch For
- Match the mortgagee name, address and loan clause exactly to the lender's instructions.
- Make sure the form shows every deductible, including a percentage wind/hail or named storm deductible.
- If wind or flood is on a separate policy, the lender usually needs evidence for that policy too.
- Send updated evidence at every renewal so the lender does not buy force-placed coverage.
Common Questions
What is the difference between an ACORD 25 and an ACORD 28?
The ACORD 25 summarizes liability coverages. The ACORD 28 summarizes property coverage on a building and shows the lender's interest.
Why does my lender keep rejecting my evidence of property?
Common reasons are a misspelled loan clause, missing rent loss coverage, a deductible above the loan's limit, or wind or flood not shown. Ask the lender for its written insurance requirements and compare them line by line.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write