Lenders & Contracts · Insurance Term
Certificate of Insurance (COI)
Definition
A certificate of insurance (COI) is a short document that summarizes a policy's key details, such as insurer, dates, limits and named insured, to prove coverage exists. It is a snapshot for information only; it does not change or add to the policy.
In Plain English
Landlords, lenders, tenants, contractors and clients ask for certificates to confirm you have the coverage your contract requires. The most common are the ACORD 25 for liability and the ACORD 28 for property.
A certificate reflects the policy on the day it was issued. If the policy is later canceled or changed, the certificate does not update. That is why many owners track expiration dates and ask for new certificates at each renewal.
Rights such as additional insured status come from policy endorsements. Ask for copies of those endorsements when the protection matters, and list the certificate holder exactly as your contract requires.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a property manager collects certificates from 30 tenants each year. A tenant's certificate shows coverage, but the policy was canceled for nonpayment two months later. The manager learns of the gap only after a claim, which is why some owners use tracking systems and require notice endorsements.
Why It Matters for Texas Property Owners
Texas Insurance Code Chapter 1811 says a certificate does not amend, extend or alter the referenced policy, and it prohibits requiring a certificate that contains false or misleading information about the policy. Owners should not ask agents to issue certificates that promise more than the policy contains.
What to Watch For
- Compare the certificate to your contract's insurance requirements line by line.
- Check named insured, policy dates, limits and any endorsements referenced.
- Ask for copies of additional insured and waiver of subrogation endorsements.
- Track expiration dates and request renewals before they lapse.
Common Questions
Can a certificate of insurance give me coverage?
No. It only summarizes the policy. Coverage comes from the policy and its endorsements.
Who issues a certificate of insurance?
Usually the policyholder's agent or insurer, at the policyholder's request.
Sources
- Texas Insurance Code §1811.152 (certificate does not change coverage)
- Texas Insurance Code §1811.054 (false or misleading certificates)
Last updated October 14, 2026 · Primesure editorial team · How We Write