If you are like our friend Bill, you either have already received a non-renewal notice from your current church insurance company or you will receive one soon. Churches and religious organizations all over Texas are being dropped like a hot potato by their church insurance company because of the cost for property coverage. Many of these top-rated insurance providers have been underpriced for so long, that it is easier to leave Texas altogether than it is to try to increase premiums to a level that will allow them to return to profitability.
When Bill from Waco received the news that his church's property insurance policy was being non-renewed, he felt a wave of dread wash over him. As he began exploring what the cost was for the kinds of insurance coverage that his church needed for church buildings, the new quotes were more than double the previous cost! With the church's already tight budget, Bill wondered how they would manage these new monthly premiums. This situation isn't unique; many Texas churches face skyrocketing property insurance costs, leaving them scrambling for affordable solutions.
Bill knew he had to act fast to protect the church's financial stability and its ability to serve the community. But where should he start? He spoke with one of the agents at Insurance For Texans feeling hopeless. He was looking for answers and needed guidance.
Understanding The Church Property Insurance Situation
The landscape of church property insurance in Texas is challenging right now. It has been this way for almost a year with many national church insurance carriers like Church Mutual Insurance Company exiting the Texas market or significantly raising insurance premiums. This exodus of companies has left churches struggling to find new church insurance, let alone affordable options. The increased premiums these church insurance programs are a stark reality that churches must confront head on. We have spoken with many that are contemplating not paying for coverage at all. Which is a terrible idea. Experienced church insurance agents have rightly been telling churches that having a reduced coverage insurance product is better than having none at all.
Factors Contributing To The Inability To Afford Property Insurance
The overwhelming trouble in the cost increases of church insurance are found in the property needs. Churches have larger building footprints with large roof lines that can be hit by hail. Several factors contribute to the rising cost of property insurance for churches. Increased claim activity from hail and other weather events, inflationary pressures on repair and rebuilding costs, and higher reinsurance costs for the insurance companies all play a role. Additionally, the risk associated with a church's construction, maintenance, usage, location, previous losses, and potential hazards further impacts affordability. Especially if your building is older like Bill's.
Current Financial Status Of The Church
We know that this won't come as a surprise, but many churches like Bill's in Waco are already operating under tight financial constraints. The cost of everything has increased and put a strain on nonprofit organizations like churches and their affiliated religious organizations like schools, daycares, and mother's day out programs. The church membership is feeling this same effect at home as well.
With member contributions limited by inflation and other economic pressures, increasing giving is not always a feasible solution. This makes the drastic changes to monthly premiums for church insurance impossible to stomach. Understanding the church's current financial status, including income sources and expenses, is critical in finding ways to manage these new insurance costs. Holding a savings plan for reserve accounts for paying for repairs or replacement of items or structures becomes a must have rather than a nice to have.
Why An ACV Or High Deductible Policy Is Better Than No Coverage At All
Having some form of coverage for your Texas church is better than having none at all. Let's face it, it does not matter where you live or where your church is located in Texas, the weather is going to get you at some point. The hail, the winds, the storms, the freezing, the ice, and the fire just keep popping up everywhere. And if you're like Bill in the heart of Texas, you can likely get all of those in one year!
With the ever increasing costs of all kinds of insurance coverage for churches, having just an Actual Cash Value (ACV) or high deductible policy is vital for church's financial stability. While these policies may be less than ideal, they provide a level of protection and financial assistance in case of "unexpected" events we just mentioned. And it doesn't matter how big or small your church is, that is better than facing a total loss with no insurance. They may not cover the full cost of rebuilding, but they can help the church recover more quickly.
Why You Must At Least Have Liability Coverage For Your Church
If your church is contemplating not carrying insurance protection for property damage from weather events and fires, we highly recommend that you consider a liability policy at a very minimum. A business liability insurance policy is essential for protecting churches from lawsuits and other liabilities that arise from claims made against your church. These can include injury to visitors or members, property damage to third parties, advertising, and personal injury claims.
Most people think of having church general liability insurance, but it is also important to consider other kinds of business liability insurance policies. These can include directors and officers liability, sexual conduct liability insurance, and pastoral liability insurance which are specific types of coverage that every church should consider to protect against potential legal and financial harm. The best news is that these insurance products are affordable for any budget so that your church insurance program can remain well protected from claims made in an increasingly litigious society.
Getting Customized Coverage With True Texas Church Insurance
Customized insurance coverage is vital for addressing the unique needs and risks of Texas churches. True Texas Church Insurance offers tailored solutions, including church general liability insurance, church property insurance, nonprofit group health benefits, church camp coverage, and religious school and daycare insurance to name a few. Working with an experienced church insurance specialist ensures that each church gets the best possible coverage for its specific situation. Which is the goal of the True Texas Church Insurance program.
Working With Insurance For Texans To Get Coverage
Insurance For Texans specializes in helping Texas churches navigate the complex insurance landscape with customized plans that match the scope of their ministries and unique needs. Our independent church insurance agents are dedicated to finding the right coverage at the best price, ensuring that churches are protected for the future. True Texas Church Insurance, available only through Insurance For Texans, is designed to meet the specific risks and requirements of Texas churches.
Click the button below to learn how True Texas Church Insurance can help your church manage high insurance costs. Let our experienced specialists guide you through finding affordable and comprehensive coverage tailored to your church's needs.