ACORD Forms
ACORD 140: Property Section
The ACORD 140 is the property section of a commercial submission. It attaches to the ACORD 125 and describes each building and its contents in the language property underwriters rate from: construction class, occupancy, protection, and exposures, then the coverages, limits, and valuation requested.
What it is
The ACORD 140 is the property section of a commercial submission. It attaches to the ACORD 125 and describes each building and its contents in the language property underwriters rate from: construction class, occupancy, protection, and exposures, then the coverages, limits, and valuation requested.
Property rating is picky about a handful of fields. Construction class, protection class, coinsurance, and valuation method each move the premium, and each has a wrong answer that stalls the quote or misprices it.
When it's used
- New commercial property submissions, attached to the ACORD 125, with a premises and building entry per location.
- Package submissions alongside the ACORD 126 general liability section.
- Remarketing property accounts, where new carriers want current construction, protection, and valuation detail.
Section-by-section walkthrough
Identification
Agency, carrier, named insured, and effective dates, consistent with the ACORD 125.
Premises information
Premises and building numbers with the street address for each. Everything else on the form keys to these numbers, and multi-building locations get an entry per building.
Watch for: Collapsing a campus into one building entry. Each building rates on its own construction and protection.
Subject of insurance
What is being covered at each building: the building itself, business personal property, personal property of others, and the limit requested for each subject.
Watch for: Limits that do not track to a current replacement cost estimate. Guessing invites a coinsurance penalty at claim time.
Causes of loss and valuation
The causes of loss form requested (basic, broad, or special) and the valuation method: replacement cost, actual cash value, or agreed value.
Watch for: Leaving valuation blank. Replacement cost and actual cash value produce very different claim checks, and underwriters will not guess.
Coinsurance and deductibles
The coinsurance percentage, commonly 80, 90, or 100, and the deductibles requested.
Watch for: Treating coinsurance as boilerplate. The percentage sets how accurately values must be reported, and underreported values get penalized at claim time.
Construction details
Construction class, year built, number of stories, total area, and roofing. Construction uses the standard classes, from frame and joisted masonry up through non-combustible, masonry non-combustible, modified fire resistive, and fire resistive.
Watch for: Describing construction in plain words that do not map to a class. 'Metal building' is not a construction class; the underwriter needs the right category.
Building improvements
Updates to wiring, plumbing, heating, and roofing, with the years the work was done. For older buildings this section decides insurability with many carriers.
Fire and burglar protection
Protection class, distance to hydrant and fire station, sprinkler coverage, and alarm detail: type, and who the alarm reports to.
Watch for: A wrong or missing protection class. It changes premium directly and is one of the most common rating errors on the form.
Occupancy and exposures
Who occupies the building, what they do there, and what operates next door. Neighboring exposures matter for fire rating.
Additional coverages and options
Optional property coverages requested at each location, like debris removal or ordinance or law.
Additional interests and remarks
Mortgagees and loss payees by building, plus remarks for anything that needs explaining: vacancy, renovation plans, unusual occupancies.
Watch for: Leaving a known mortgagee off. It surfaces at closing or claim time, and adding it later is an endorsement someone has to chase.
In Relay
ACORD Generation is live in Relay. It drafts the ACORD 140 from the client record and the documents you already have, and a person reviews every field before anything goes out. See how →
Common errors
- Construction class wrong, or described in words that do not map to a standard class.
- Protection class missing or inaccurate for the actual location.
- Building limits set without a current replacement cost estimate behind them.
- Coinsurance percentage chosen by habit rather than matched to the values reported.
- Blanket and scheduled values mixed up across buildings and locations.
- Square footage or year built missing, which stalls rating.
Common questions
Does the ACORD 140 stand alone?
No. It is a section form that attaches to the ACORD 125, which carries the applicant information, prior carriers, and loss history. Property-plus-liability packages add the ACORD 126 as well.
What valuation methods does the ACORD 140 ask about?
Replacement cost, actual cash value, and agreed value. Replacement cost pays to rebuild without deducting depreciation, actual cash value deducts it, and agreed value requires a signed statement of values but suspends the coinsurance penalty while it is in effect.
Can Relay draft an ACORD 140?
Yes. ACORD Generation is live in Relay. It drafts property sections from the client record and documents you already have, like dec pages and statements of values, and a person reviews everything before it goes out.
Related forms
Part of the Relay ACORD form library. Updated 2026-07-11. See how we source content.
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