The ACORD 24 Certificate of Property Insurance is the property equivalent of the ACORD 25. While the ACORD 25 covers liability insurance, the ACORD 24 provides evidence of commercial property coverage. It is used when a lender, lessor, or third party needs proof that a business carries property insurance on a specific location or asset.
The ACORD 24 is used in situations where a third party has an interest in insured property: • Lenders requiring proof of property insurance on collateral • Lessors requiring proof that a lessee is insuring leased property • Equipment finance companies requiring proof of coverage on financed equipment • Landlords requiring tenants to prove they carry property coverage on tenant improvements
The ACORD 24 summarizes the property coverage information for specific locations or items:
• Location address and building description • Coverage type (building, BPP, business income, etc.) • Covered perils (special form, named perils, etc.) • Amount of coverage • Deductible • Policy number, effective date, and expiration date • Name of the insured and carrier • Loss payee or additional interest information
When a lender has a financial interest in covered property, they are typically listed as a loss payee — which means in the event of a covered loss, the claim payment is made jointly to the insured and the loss payee (lender). This protects the lender's interest in their collateral.
An additional interest is a party with some interest in the property but who is not a loss payee. They receive notice of cancellation but do not receive claim payments directly.
Many commercial property policies include a coinsurance clause that requires the insured to carry coverage equal to a specified percentage (usually 80% or 90%) of the property's replacement cost. If the property is underinsured at the time of a loss, the claim payment is reduced proportionally.
Lenders who request an ACORD 24 may want to confirm that the coverage amount is sufficient to satisfy the coinsurance requirement. Agents who issue certificates for underinsured properties create E&O exposure if a loss results in a coinsurance penalty.
Listing the wrong location address or building description
Listing the coverage amount based on market value rather than replacement cost
Forgetting to list the lender or loss payee correctly
Issuing a certificate before confirming the property is actually covered at the stated amount
Not updating the certificate when coverage amounts change at renewal
Send your client a plain-English intake link. When they finish, the completed ACORD 24 and all required companion forms are generated and ready to submit.