Certificate of Insurance (COI)
A certificate of insurance (COI) is a one- or two-page document that summarizes an insurance policy: who is insured, the insurer, the policy numbers, the coverage types and limits, and the policy dates. Lenders and landlords use it as quick proof of coverage, though it does not change the policy itself.
Why a certificate of insurance matters
Certificates give lenders a fast way to confirm coverage without reviewing full policies. They are issued by the insurer or broker and name the lender or landlord as the certificate holder.
A certificate is for information only. Standard certificate forms state that they do not amend, extend or alter the coverage in the policy, so a certificate showing coverage the policy does not actually provide gives the holder no rights. For critical requirements, lenders also ask for the policy endorsements.
Standard industry forms make certificates easier to read and compare. The most common form for liability coverage is the ACORD 25, and property coverage is usually shown on separate ACORD property forms.
Certificate of Insurance vs. Insurance Policy
The policy is the contract that sets out what the insurer will pay. The certificate is a summary of that contract. When the two disagree, the policy controls, which is why lenders confirm key terms such as endorsements and deductibles in the policy itself.
How Smart Capital Center handles certificates of insurance
Smart Capital Center's AI agents read certificates of insurance in the formats they arrive, pull out coverage, limits and dates, and compare them against each loan's requirements, flagging potential coverage gaps and upcoming expirations for the team.
Frequently asked questions
What information is on a certificate of insurance?
A certificate lists the insured, the producer or broker, the insurers, the policy numbers, the types of coverage, the effective and expiration dates, the coverage limits, the certificate holder and any additional insured or special provisions. A description section explains which locations or operations are covered.
What is an ACORD 25 form?
ACORD 25 is the standard certificate of liability insurance used across the U.S. insurance industry. It shows general liability, auto, umbrella and workers' compensation coverage. Property coverage for lenders and landlords is usually shown on separate ACORD property forms. The layout is the same regardless of insurer, which makes certificates easier to compare.
Does a certificate of insurance prove the lender is covered?
Not on its own. A certificate can list the lender as certificate holder or additional insured, but the lender's rights come from the policy and its endorsements. Lenders confirm those rights by reviewing the endorsements, such as the mortgagee clause, in the policy documents.