Personal lines agents are putting liability coverage on an ACORD 27 - Evidence of Property Insurance form and the account managers are adding it as a coverage. However, the agency can't find a resource about what should and shouldn't go on specific ACORD forms.

Q: What is the intent of the ACORD 27 form? Where can agencies go to learn more? 

Response 1: The ACORD 27 form is meant to be used as confirmation and description of property coverage, not liability insurance. ACORD 27 provides evidence of property insurance and it self-limits what it does by stating:

"This evidence of property insurance is issued as a matter of information only and confers no rights upon the additional interest named below. This evidence does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies below. This evidence of insurance does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the additional interest."

Response 2: Your employees should not disclose commercial property liability limits. It is not their responsibility to share with the mortgage companies, which are entitled to property information only.

Response 3: I'm confused. Why are you using the Acord 27 Evidence of Property Insurance form for liability coverage? The ACORD 25 is used to certify commercial liability coverage. Years ago, agents voted down a personal lines certificate due to all of the problems with the commercial lines certificates of insurance.

The ACORD website contains information about what each form is used for and is available via a subscription. However, qualifying Big “I" members have a complimentary license to use ACORD Forms.

Response 4: Page 28 of the “Certificates of Insurance Issues & Answers" white paper from the Big “I" Virtual University research library provides an explanation of ACORD 27 and its use.

This question was originally submitted by an agent through the Big “I" Virtual University's (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

This article is intended for general informational purposes only, and any opinions expressed are solely those of the author(s). The article is provided “as is" with no warranties or representations of any kind, and any liability is disclaimed that is in any way connected to reliance on or use of the information contained therein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.