Evidence of Property

[Donna Bogart]

Does anyone know the difference between using the ACORD 27 (EOP) or the ACORD 24 (Cert. of Property Insurance)?

[Duke Williams]

An important distinction exists between the Certificate of Property Insurance (ACORD 24) and the Evidence of Personal Property Insurance (ACORD 27) or the Evidence of Commercial Property Insurance (ACORD 28.) This distinction is outlined in the opening statements of each form.

Certificate of Property Insurance


"This Certificate is issued as a matter of information only and confers no rights upon the certificate holder. It does not amend, extend, or alter the coverage afforded by the policies below."

Both Evidence of Property Insurance forms


"This is evidence that insurance as identified below has been issued, is in force, and conveys all the rights and privileges afforded under the policy."

If the receiver of the form wants to verify that coverage exists on a policy and has no direct interest in the policy, use the Certificate of Property Insurance. However, if the receiver of the form does have a verifiable insurable interest in the policy, such as a mortgagee or a lender, use the Evidence of Personal Property Insurance when the property is insured under a Personal Lines policy. When the property is insured under a Commercial Lines policy, use the Evidence of Commercial Property Insurance. .

Purpose of the Certificate of Insurance


The purpose of the Certificate of Insurance has been the topic of frequent discussions throughout the industry. Attention centers around the true purpose of a certificate and the rights, if any, it conveys to a certificate holder. This is particularly important when the difference between a certificate holder and lien holder, loss payee, or mortgagee is considered.

In 1974, the Court of Appeals, Fifth District ruled that a certificate is not a contract between the holder and the insurer. It only provides information to an interested third party that insurance is in force at the time of issuance. The court also stated: "The provision regarding notification in the event of cancellation is a mere promise, unsupported by any consideration." Although some companies provide notice of cancellation to certificate holders, they are not obliged to do so, since the holder is not a party to the contract. Agents or brokers should not change any provisions on this form without prior consent of the issuing company.

The Certificate of Property Insurance is used for most property situations in which the insured has requested certification to a third party of issued property coverages. The uses of this Certificate can include parties involved in condominium association agreements, lessor/lessee agreements, or other areas of certification. The ACORD Certificate should be issued only in compliance with company instructions. ACORD recommends that the Certificate NOT be used in the following situations:

To satisfy a mortgagee or lienholder (ACORD 27, Evidence of PersonalProperty Insurance or ACORD28, Evidence of Commercial Property Insurance should be used for this)


To provide information to the owner of a leased motor vehicle or the lender about both liability and physical damage coverages applying to the vehicle (ACORD 23, Leased Auto Certificate of Insurance, should be used for this)

To quote wording from a contract
To waive rights
To attach to an endorsement
To quote any wording which amends a policy unless the policy itself has been amended.

[Theresa Neff]

On a Certificate of Property Insurance is it appropriate to have the Named Insured as a Certificate Holder? Or useing "None" in the box?

[Duke Williams]

A Named Insured wold never have any reason to be a Certicate Holder.

[Theresa Neff]

Thanks, just making sure. A co-worker w/18 years experience is trying to tell me it is okay to NONE or the Named Insured in the cert holder box. The reason she does this is so the insured can provide proof of coverage to anyone he does business with that requires it.

[Duke Williams]

You can do a NONE.