ACORD 140

What the ACORD 140 is for

The ACORD 140 carries the property detail that the ACORD 125 does not: for each premises and building, what subject of insurance is being covered, at what amount, on what valuation basis, and under which causes-of-loss form.

It is the form where the decisions that decide a property claim are made. Replacement cost against actual cash value, special against broad causes of loss, and the coinsurance percentage are all set here, long before anyone reads them off a declarations page.

What it collects

Described in our own words, block by block. This is a summary of the information the form gathers, not a reproduction of the form itself.

Premises and building identification

Which location and building on the ACORD 125 schedule this section is describing.

Subject of insurance

Building, business personal property, stock, tenant improvements, business income and extra expense, each with the amount requested.

Coinsurance and valuation

The coinsurance percentage, and whether the valuation is replacement cost, actual cash value or functional.

Causes of loss

Basic, broad or special, plus any specific perils being added or removed.

Deductible

The flat deductible, and separately any percentage deductible for wind, hail or named storm.

Blanket, inflation guard and other conditions

Whether limits are blanket or specific, any inflation guard percentage, and agreed value where it applies.

Additional interests

Mortgagees, loss payees and lienholders whose interest must be recorded on the policy.

Check before it leaves the agency

The defects that cause trouble later are nearly always the same handful. Run these before the form goes out.

• The building value used is a current replacement cost, not a purchase price or an assessed value. Coinsurance penalties are almost always the consequence of a stale number here.
• The valuation basis requested matches what the client believes it has. A client who expects replacement cost and holds an actual-cash-value policy will find out at the worst moment.
• The causes-of-loss basis is stated explicitly rather than left to the carrier's default.
• Any wind, hail or named-storm percentage deductible is captured, since a percentage deductible on a large TIV is a very different number from a flat one.
• Business income is requested on the right basis, with a worksheet behind it if the carrier requires one.
• Every mortgagee and loss payee is listed with the exact clause the lender requires, so the evidence forms issued later reconcile with the policy.

What the ACORD 140 does not do

• It does not describe the liability exposure at a location. The ACORD 126 does that.
• It does not itself record a mortgagee on the policy; the interest requested here has to appear on the issued declarations.

Which edition?

ACORD revises its forms, and the edition date is printed in the bottom-left corner beside the form number. This page deliberately does not name an edition, because a hard-coded one goes stale and a stale edition on a reference page is worse than none. Produce the form from your own management system, which will give you the current version, and read the corner if a carrier or a contract has asked for a specific one.

At renewal

BindCheck reads a bound renewal against the prior policy and reports every form, limit, deductible and endorsement that changed, with each finding cited to the page it came from. That matters for this form because what you put on an ACORD is only correct for as long as the policy behind it is unchanged: a certificate, an evidence form or a schedule of interests prepared from last term's facts is a defect nobody sees until the party relying on it needs it.

Related forms

• CP 10 30, the special causes-of-loss form