ACORD 140 Fillable Form | Property Section Application PDF
Property Section
ACORD 140 is the standardized property section used to apply for commercial insurance on buildings, contents, and business income by providing detailed premises, construction, and protection information.
Form Type: Application Supplement
Edition: 2016/03
Category: Commercial Property
Attaches to: Form 125
Download ACORD 140 Form
Free fillable PDF – Current edition
What is the Property Section Form?
The ACORD 140 form is the key to applying for commercial property insurance. It gathers all the important details about your buildings, business personal property, and potential income loss, giving insurers a clear picture of your risks. From construction type and occupancy to fire protection systems, every detail helps ensure your coverage matches your business needs.
This form also captures property values and loss history, which allows underwriters to accurately evaluate risk and determine fair premiums. By providing this comprehensive information, the ACORD 140 helps protect your business with the right insurance, so you can focus on running your operations with confidence.
The property section is one of the most frequently used commercial insurance application supplements, with over 3 million Acord 140 forms submitted annually for buildings, warehouses, retail locations, offices, and manufacturing facilities across all industries.
What the ACORD 140 Form Covers
🏢 Building Coverage
Physical structure including walls, roof, foundation, permanently installed fixtures, built-in equipment, and building improvements. Covers damage from fire, wind, hail, vandalism, and other perils.
📦 Business Personal Property
Contents including furniture, equipment, inventory, supplies, computers, machinery, and tenant improvements. Coverage for property you own or are legally responsible for at the insured location.
💼 Business Income
Lost income and extra expenses if property damage forces business closure. Covers lost profits, continuing expenses, and costs to resume operations during restoration period.
🔧 Equipment Breakdown
Mechanical or electrical breakdown of covered equipment including HVAC systems, boilers, refrigeration units, production machinery, and computer equipment.
Why This Fillable ACORD 140 is Required
Commercial property insurance underwriting requires extensive detail beyond what fits on the main application. The property section provides:
- Risk Assessment Data: Construction type, fire protection, sprinkler systems determine fire risk and rates
- Valuation Information: Replacement cost, actual cash value, or agreed value basis for claim settlements
- Occupancy Details: How building is used affects hazard level and premium
- Protection Class: Fire district, hydrant distance, and response times impact pricing
- Loss Prevention: Security systems, fire alarms, and safety measures reduce rates
- Additional Interests: Mortgagees, lienholders, and loss payees must be listed
⚠️ Accuracy is Critical
Incorrect information on the ACORD 140 can void coverage or lead to claim denials. Misrepresenting construction type, square footage, occupancy, or protection features constitutes material misrepresentation. Always verify building specifications with actual property inspections or documentation.
When You Need the Property Section
The ACORD 140 form is required whenever applying for commercial property insurance on buildings, business contents, or business income coverage.
Common Property Insurance Scenarios
🏭 Building Owners
Who Needs It: Anyone who owns commercial real estate
- Office building owners
- Retail property landlords
- Warehouse and distribution owners
- Manufacturing facility owners
- Multi-tenant property owners
- Mixed-use development owners
Coverage Needed: Building, loss of rents, liability
🏪 Business Tenants
Who Needs It: Businesses renting commercial space
- Retail stores and restaurants
- Professional offices
- Medical and dental practices
- Service businesses
- Contractors and trades
Coverage Needed: Business personal property, tenant improvements, business income
🏗️ Owner-Occupants
Who Needs It: Businesses that own the building they operate from
- Manufacturing companies in owned facilities
- Medical practices owning their building
- Restaurants owning their location
- Auto dealers owning dealership
Coverage Needed: Building, contents, business income, equipment
🏘️ Special Occupancies
Who Needs It: High-value or specialized properties
- Hotels and hospitality
- Apartment buildings
- Shopping centers and malls
- Self-storage facilities
- Schools and daycare centers
Coverage Needed: Specialized coverages for unique exposures
Specific Triggers for Property Applications
- New Business Purchase: Buying commercial property requires immediate insurance to close
- Lease Requirements: Landlord requires tenant to carry property insurance per lease terms
- Lender Requirements: Mortgage or commercial loan requires property insurance naming lender as mortgagee
- Business Expansion: Opening new location, warehouse, or facility
- Major Renovations: Improvements increase property value requiring higher limits
- Switching Carriers: Changing insurance companies requires new application
- Policy Renewal: Some carriers require updated property section at renewal
💡 Pro Tip: Complete Before Closing
When purchasing commercial real estate, start the property application 30 days before closing. Underwriting can take 1-2 weeks, and lenders need insurance binder before funding. Last-minute applications create delays and potential closing issues.
What ACORD 140 Property Insurance Form Covers
Building Coverage (Coverage A)
Building coverage protects the physical structure and permanently attached items:
Included in Building Coverage:
- Foundation, walls, roof, and floors
- Permanently installed fixtures (lighting, plumbing, HVAC)
- Additions and extensions attached to building
- Permanently installed machinery and equipment
- Outdoor fixtures (attached signs, canopies)
NOT Included in Building Coverage:
- Land (never insurable)
- Landscaping, trees, shrubs, plants (needs separate coverage)
- Outdoor signs (requires separate scheduled coverage)
- Vehicles (covered under auto policy)
- Property of tenants (tenant’s responsibility)
Business Personal Property (Coverage B)
Contents and movable property owned by or in care of the insured:
Included in Contents Coverage:
- Furniture, desks, chairs, tables
- Computers, servers, IT equipment
- Office equipment (copiers, printers, phones)
- Machinery and production equipment (not permanently installed)
- Tools and equipment
- Tenant improvements and betterments
- Property of others in your care (with proper coverage)
- Leased or financed equipment
Business Income and Extra Expense (Coverage C)
Protection for financial losses when property damage forces business closure:
Business Income Covers:
- Net profit you would have earned
- Continuing normal operating expenses
- Payroll (if not excluded)
- Loss during restoration period
- Extended period of restoration
Extra Expense Covers:
- Temporary location rental
- Equipment rental to continue operations
- Overtime labor costs
- Expedited repairs or replacement
- Temporary utilities setup
Protect Your Property in One Form
Get the official ACORD 140 Property Section to insure buildings, contents, and income — fast, compliant, and ready to submit.
Frequently Asked Questions
How do I determine replacement cost for my building?
Three methods: (1) Professional appraisal ($500-2,000, most accurate), (2) Online replacement cost estimator (free, less accurate), (3) Contractor estimate for rebuilding (moderately accurate). For buildings over $1 million, professional appraisal recommended.
What’s the difference between replacement cost and actual cash value?
Replacement Cost: Cost to rebuild/replace with new materials, no depreciation deduction. $100,000 fire pays $100,000. Actual Cash Value: Replacement cost MINUS depreciation. 20-year-old roof destroyed, replacement cost $50,000, depreciated value maybe $20,000. ACV pays only $20,000.
Do I need separate flood insurance?
YES if in flood zone. Standard commercial property policies EXCLUDE flood. Need separate NFIP (National Flood Insurance Program) or private flood policy. Lenders require flood insurance if in FEMA designated flood zones.
What if I’m a tenant – what should I insure?
Tenants insure: (1) Business Personal Property (your contents), (2) Tenant Improvements & Betterments (upgrades you made to space), (3) Business Income. You do NOT insure the building unless lease makes you responsible.
How does coinsurance work?
Coinsurance requires you insure property to stated percentage of value (typically 80%). If underinsured, you become co-insurer and share in losses. Example: $1M building, 80% coinsurance requires $800,000 insurance. If only $600,000, you’re 25% co-insurer. $100,000 loss pays only $75,000.
Can I insure multiple buildings under one policy?
Yes, using blanket coverage. One combined limit covers all buildings. Advantage: flexibility if one building has large loss. Disadvantage: may require higher total limit than individual building limits.
How long does underwriting take?
Simple properties: 3-7 days. Complex or high-value: 2-3 weeks. Carrier may require: property inspection, loss runs, financials, additional information. Start application 30 days before needed coverage date.
What happens if information changes after binding?
Notify carrier immediately of material changes: major renovations, occupancy changes, new tenants, system upgrades. Changes may affect rates. Failure to notify can void coverage.