Certificate Of Insurance Terminology

What Is a Certificate of Insurance?

A Certificate of Insurance (COI) is a formal document issued by an insurance provider that verifies active insurance coverage. It outlines the essential details of a policy—such as the insured party’s name, coverage types, policy limits, and effective dates—without disclosing the full terms of the contract.

For landlords, property managers, and real estate investors, COIs are especially important when hiring vendors, contractors, or allowing tenants to carry renters insurance. It’s a simple way to confirm that third parties have adequate liability or property coverage, reducing your exposure to risk.

What Does a Certificate of Insurance Include?

A standard certificate of liability insurance or property insurance will typically include:

• Name of the insured party
• Name of the insurance company
• Type of coverage (e.g., general liability, property, workers’ comp)
• Policy number(s)
• Coverage start and end dates
• Liability limits
• Certificate holder (the party requesting proof of insurance)
• Additional insured status, if applicable
  

This documentation is often required during property transactions, when leasing to commercial tenants, or when subcontracting work on a rental property.

When Do You Need a Certificate of Insurance?

You might request or provide a COI in any of the following situations:

• Hiring a contractor to repair or maintain your rental property
• Leasing commercial property to a business tenant
• Verifying a tenant’s renters insurance
• Working with vendors or property managers
• Meeting lender or HOA insurance requirements
  

For example, if you hire a roofing contractor for storm damage repairs, requesting a COI ensures they carry appropriate general liability and workers’ compensation insurance. This helps protect you from being held financially responsible if something goes wrong on-site.

Want to dive deeper into risk scenarios like this? Check out our guide to equipment breakdown coverage for landlords.

Is a Certificate of Insurance Legally Binding?

No. A certificate of insurance is not the policy itself—it does not alter the terms of the actual insurance contract. It’s simply proof that the named party holds a valid policy on the date issued. If the policy is canceled after that date, the certificate may no longer reflect accurate coverage unless it is reissued or updated.

Final Word

A certificate of insurance is a valuable risk-management tool for landlords, helping verify that contractors, vendors, or tenants have active and appropriate coverage. It’s not just red tape—it’s a smart way to avoid surprise liability and ensure your rental operations are protected.