All across Texas, church finance teams have a pain point. Property coverage premium costs have escalated to the point of no return. Renewal policy terms have become a problem for church insurance policies, and many of the larger churches have begun to self-insure.
The finance team at a large church in Fort Worth was recently faced with this problem. Their property insurance policy renewal had arrived, and the price was shocking to say the least. The church needed to cover roughly $7 million worth of church buildings and equipment. The premium had jumped so much that it was now a financial burden that no longer fit in their budget.
They had always paid for good insurance, knowing how unpredictable Texas weather could be. But now, with costs rising, they were running out of options. They needed to find a better way to protect their church without draining their finances. That’s when they started hearing about a Risk Purchasing Group as a possible solution.
What Is A Risk Purchasing Group And How Does It Work?
The finance team learned that a Risk Purchasing Group is a way for churches to buy insurance as part of a larger group or church organization. Instead of each church negotiating its own policy, they join forces with other churches to get better pricing.
The Risk Purchasing Group does not replace a traditional commercial insurance company. It simply allows churches to combine their buying power to access competitive rates as a group of churches working together. Insurance carriers are more willing to offer lower prices when they know they are covering a large group of similar organizations and diversifying their risk across all of them.
This concept is what The Baptist General Convention of Texas is doing with the program they are rolling out later in 2025. That program used a similar method to bring Texas Baptists together under one plan for church property coverage. Their Risk Purchasing Group is offering similar stability and pricing advantages, though it is only available through the BGCT.
A-Rated, Standard Carriers Provide Strong Coverage
When the finance team first began seriously looking into the option to get church property insurance policy, they worried that a group program might not offer the same protection as a traditional policy. They had heard horror stories about cheap insurance that failed to pay out on insurance claims when churches needed it most.
But they soon found out that the carriers backing this program were A-Rated, Standard insurance companies. These companies had strong financial ratings and a history of handling large claims.
They also liked that the program was designed to be used by churches across the country, and not just Texas churches. With storms, hail damage, and hurricanes causing massive losses every year, they needed an insurance provider that could handle the property damage and still be around when the next storm hit.
More Aggressive Pricing Because Risk Is Spread
The biggest reason their premium had skyrocketed was because their old insurance company was struggling with too many property claims from the many convective storms that North Texas experiences. When one church insurance company takes on too much potential risk in Texas, they experience all of the claims across the state. This makes the cost of risk more expensive.
With a Risk Purchasing Group, no single insurance company carries the full weight of the high risk properties in Texas. The risk is spread across multiple insurance carriers and states, which helps stabilize insurance premiums for everyone.
The finance team saw this as a big advantage. Their old insurer had raised rates because of too many losses in their book of business. The RPG program allowed different insurers to share the risk, which meant their church could get better pricing without sacrificing coverage terms.
Is a Risk Purchasing Group Right for Your Church?
For churches with property values larger than $5,000,000, a Risk Purchasing Group can be a way to find better insurance pricing while keeping comprehensive coverage in place. It is not an open-market policy, so churches must meet certain requirements to qualify.
The Fort Worth church found that this was a strong solution for their insurance needs. By joining the group and paying the enrollment fee, they were able to lower their premium while still protecting their buildings. Working with the experienced insurance agent at Insurance For Texans, they were able to not only consider the Risk Purchasing Group, but also see other options in the property insurance marketplace through the True Texas Church Insurance program.
If your church is struggling with high insurance costs, a Risk Purchasing Group might be the answer. But it is important to work with an independent agent who can evaluate all options available. The folks at Insurance For Texans start by asking questions, and then work hard on your behalf to find the right solution for your needs.
Click the button below to find out if your church qualifies and get better pricing on your property insurance.