If somebody is asking about a building or equipment, a liability certificate is the wrong document. The certificate of liability insurance shows liability only. Evidence of property insurance is a different form, published in two numbered versions, 27 and 28, and it is what a lender, a landlord, or an equipment lessor actually needs when the question is about a building, its contents, or a financed asset. Who this is for: anyone whose request mentions a mortgagee, loss payee, or lienholder.
The short version
- A certificate of liability insurance says nothing about your building or contents.
- The evidence of commercial property insurance form, numbered 27, is what most lenders want.
- Form 28 is a similar evidence form used more often for commercial leases and multiple locations.
- A mortgagee or loss payee has to be added to the property policy, not just typed on the form.
- Getting the wrong form is the single most common cause of a delayed closing.
Which form answers which question
| The request | The form | What it shows |
|---|---|---|
| Prove you carry general liability | Certificate of liability insurance | Liability policies, limits, and dates |
| Prove the building is insured for a loan | Evidence of property insurance, form 27 | Property coverage, amount, deductible, and the mortgagee |
| Prove property coverage for a lease or several locations | Evidence of property insurance, form 28 | Property coverage per location, with the interested party shown |
| Prove financed equipment is insured | Evidence of property insurance or an equipment schedule | Coverage on the specific asset and the lienholder |
| Prove workers compensation | Certificate of liability insurance | The workers compensation line and employers liability limits |
Mortgagee, loss payee, and lienholder
These are the property equivalents of an additional insured, and like additional insured status they have to be added to the policy itself:
- Mortgagee. A lender with an interest in real property. It receives loss payments on the building and notice of cancellation.
- Loss payee. A party with a financial interest in personal property such as equipment or a vehicle. It is named on claim payments for that property.
- Lienholder. Usually the same idea, used for financed vehicles and equipment.
Typing a lender into an evidence form without adding it to the policy creates the same gap as a certificate holder who was never endorsed as an additional insured. The lender thinks it is protected and it is not.
What lenders check
- The insured name matches the borrower entity exactly, including any holding company.
- The property address matches the collateral, unit numbers included.
- The coverage amount meets or exceeds the loan, or satisfies a replacement cost condition.
- The deductible is within whatever cap the loan documents set.
- The mortgagee clause names the lender exactly as its documents require, often with the words 'its successors and assigns'.
Every one of those is a common reason for a closing to slip by a day, and all of them are fixable in advance by sending the loan's insurance requirements to your broker as soon as you receive them.
What this looks like in practice
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A small business is refinancing the building it operates from, with closing set for a Friday.
What went wrong: The borrower sent the lender an ACORD 25 certificate of liability insurance, and the lender needed evidence of property insurance naming it as mortgagee.
What it cost: Closing slipped a week, which cost a rate lock extension fee and a second round of documents.
The fix: Send the loan's insurance requirements to your broker the day you receive them, and ask specifically for evidence of property insurance with the lender's mortgagee clause.
Frequently asked questions
Q: What is evidence of property insurance?
A standard form, numbered 27, showing property coverage, the amount, the deductible, and the mortgagee or loss payee. Lenders commonly require it before closing.
Q: What is the difference between forms 27 and 28?
Both are property evidence forms. Form 27 is used most often for a single property and a lender, and form 28 is used for leases and situations covering multiple locations or interested parties.
Q: Why will a certificate of liability insurance not work for my lender?
Because it shows liability coverage only. A lender is protecting its collateral, so it needs evidence of property insurance and to be named as mortgagee or loss payee on that policy.
Q: What is a mortgagee clause?
Wording added to the property policy naming the lender, giving it loss payment rights on the building and notice if the policy is cancelled. It has to be added to the policy, not just typed on a form.
Q: How fast can I get one?
Same day in most cases, as long as the property policy is in force and the lender's exact name and clause wording are provided with the request.
Q: What if my lender wants replacement cost coverage?
That is a policy setting rather than a form question. Ask your broker to confirm the property is written at replacement cost and that the amount satisfies any coinsurance condition in the policy.
How Morrow helps with certificates of insurance
Morrow is a licensed independent commercial insurance brokerage that specializes in certificates of insurance and the endorsements behind them. Producing the right evidence form for a lender or landlord is the kind of thing we handle every day, for clients across construction, trades, professional services, trucking, real estate, and hospitality, so we know what a compliance reviewer will reject before you send it.
- We issue certificates the same day you ask, and usually within the hour.
- We read the contract first, so the endorsements the certificate reports actually exist on your policy.
- We push back on requirements the market will not issue, and give you language your client will accept.
- We keep a record of who was issued what, so renewals go out before anyone chases you.
Get in touch and we will see how we can help. Send us the contract or the certificate request and we will tell you what your current policy can support and what needs to change. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information and is not legal advice or a statement of coverage. Certificates report what a policy says, and the policy wording controls in every case. Forms and requirements vary by carrier, by state, and by contract, so have a licensed advisor review your own policy and your own contract before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.