ACORD 27

What the ACORD 27 is for

The ACORD 27 exists for the lender conversation. A mortgagee, a lienholder or a loss payee needs to see that the property securing its loan is insured, for how much, and that its interest is recorded. The evidence form is built around that requirement rather than around a contract requirement.

Agencies most often issue it at closing, at renewal, and any time a lender's insurance tracking service asks for a fresh copy. Because tracking services reject on small mismatches, most of the work in issuing one is reconciling the lender's loan number and mortgagee clause against what the policy actually carries.

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.

Producer and insured

The issuing agency and the named insured as shown on the declarations.

Company and policy

The property carrier, policy number, and the effective and expiration dates of the term being evidenced.

Property information

The location and a description of the property the evidence covers.

Coverage information

Perils insured, the amount of insurance, the deductible, and the coverage basis carried.

Mortgagee, additional loss payee and remarks

The lender's interest, in the form the lender requires, plus any loan number or clause it has asked for.

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 mortgagee clause is reproduced exactly as the lender gave it, including any successors-and-assigns wording, and the loan number is present when the lender requires one.
• The lender's interest is actually recorded on the policy. Typing a mortgagee onto the evidence form does not put one on the policy.
• The amount of insurance meets whatever the loan documents require, and any coinsurance condition is understood before you send it.
• The location matches the collateral address, which on a multi-location schedule is a real source of error.
• The term dates cover the period the lender is asking about, particularly at renewal when the new policy has not yet been issued.

What the ACORD 27 does not do

• It does not amend the policy or add the lender's interest to it. The endorsement on the policy does that.
• It is not the commercial-specific evidence form. Where a lender requires that, the ACORD 28 is the form.

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.

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