Leslie has been a member of her local church in Tyler for many years. During that time she has worn many hats and her current role has her leading the finance committee. It's a comfortable role for her since she is a CPA that works with many local businesses in East Texas keeping their books straight and helping them plan for what comes next. But even with all of this experience, Leslie's mind was blown when she opened the renewal details for her church's insurance package.
The renewal invoice for their church insurance had arrived and was forwarded to her email inbox. The church insurance provider had leveled a staggering 50% increase compared to the previous year's cost. Sharing this with the rest of the financial committee sent shockwaves through the group, prompting urgent questions about the sustainability of their church budget. While the number would certainly be staggering to any church, a smaller church that runs a little tighter just can't stomach such a substantial increase in the insurance premium.
Why had the church insurance company taken so much rate increase so suddenly? Was this happening to all Texas churches, or just them? Was there anything that can be done to relieve some of the financial pressure? This pressing issue is a problem for most churches in Texas. And for Leslie and many others it has them seeking clarity and solutions.
Overview Of High Cost Of Church Insurance In Texas
The soaring cost of church insurance in Texas is influenced by a confluence of factors. These factors include the rising inflation of rebuilding costs, the prevalence of hail claims given the state's sizable roofs, and liability risks such as abuse and molestation amongst other things. While any one of these factors would not produce a sizable increase in premiums, when all of them seemingly hit at once the Texas church insurance providers are forced to take more drastic action. This intricate web of considerations also underscores the necessity of proper coverage to help safeguard the invaluable assets and operations of churches across Texas.
Specific Factors Contributing To Expensive Church Insurance In Texas
We just mentioned several specific elements that contribute to the costly nature of church insurance in the Lone Star State. These elements are making it harder for Texas churches to afford the essential coverage that they need for even basic issues. From the destruction wrought by hail storms all across the state to the escalating costs of construction going higher and higher with inflation, property insurance has become impossible to nail down. Much less afford it.
Along with that, the litigious nature of our society has created pervasive legal liability risks that are forcing Texas churches to face a unique set of challenges when budgeting is considered by Leslie and her team. Understanding these factors and how they relate to the insurance risk profile of the church is important for people like Leslie in Tyler. Navigating the implications of protecting their spiritual homes from the financial damages that can be brought in an instance make for a nerve racking job.
Property Damage Hail Risks Faced By Churches In Texas
If you have lived in Texas for any length of time, you understand the risk of hail. Texas churches are particularly vulnerable to damage from hail which is a reality that significantly impacts church insurance rates. Given the size of a lot of Texas churches and the high ridges in roof lines, churches have significantly larger roofs than many other buildings in Texas. The vast roof areas of church buildings bear the brunt of these storms when the wind brings the rain and hail sideways. This is why hail brings the most common claims for churches.
These massive storms lead to substantial claim amounts which do two negative things to the financial health of a church. The insurance claim for hail damage will require a deductible payment, which has grown each year, as part of the claim process. The frequency of these hail damage claims has also sent church insurance providers out of the state meaning that there are fewer options available for building coverage.
Both of these items together have driven up premiums for churches and other religious organizations. It has also produced insurance policies that often come with exclusions and high deductibles specifically related to wind and hail. These complicating factors have created a financial hardship for churches seeking comprehensive coverage similar to Leslie's.
Value and Replacement Cost of Church Buildings
None of us have been immune to inflation over the last few years. Every time we go to the grocery store, the bill just seems to grow. The cost to rebuild church properties damaged by an event covered under your commercial property insurance has grown in much the same way. Both the materials and the labor to do construction work of any type just keeps climbing.
The replacement cost, or reconstruction cost, of church buildings is determined by several factors. They include the age of your building, construction type, materials used, unique architectural features, and style. Each of these factors have been affected by inflation in different ways. But in the end, they have all increased. With high inflation rates affecting building replacement cost limits on policies, churches and their insurance providers must navigate an increasingly costly environment for financial protection.
Liability Risks Faced By Churches
Liability risks pose another significant concern for Texas churches. Most people think of a general liability policy when they think of liability issues at their church. But the problem is that protecting your church from liability problems requires more than just general liability which focuses on third party damage claims for property damage and bodily injury. But with issues ranging from professional liability for pastoral counseling, abuse and molestation coverage for workers and volunteers, and employment practices liability that can result in substantial costs being levied at your church, it's important to think beyond the immediate. If a lawsuit is brought, the legal defense costs alone can be staggering. But if a judgement is rendered for medical costs, bodily injury claims, or mental injury the defense costs will seem the minimal part of the equation which is why premiums have increased. These risks not only threaten the financial stability of churches but also their ability to carry out their mission and activities effectively.
Robust Insurance Coverage Needed by Churches in Texas
Texas churches require a mix of insurance coverage to fully protect against the many potential risks that they face. This includes commercial property insurance to protect against hail storm damage, water leak floods, and problems created by power losses during a freeze. Proper liability coverage will include slip and fall injuries, accidental property damage by volunteers, and even cyber-attacks. Each type of coverage for damage addresses specific vulnerabilities that a church has, highlighting the importance of a comprehensive insurance strategy. If your head is spinning thinking about all of the types of insurance that could be needed, don't worry. Independent insurance agents are here to help.
Importance of Comprehensive Coverage for Churches
Having a comprehensive policy, or policies, is paramount for churches to mitigate the specific risks they face. When you work with an experienced church insurance specialist, obtaining the coverage needed becomes easier. That experience allows them to tailor a policy to your church's needs rather than attempt to bully you into their predefined package. This approach allows for a well-rounded church insurance policy that ensures churches can continue their mission with peace of mind. Ultimately, this is how Leslie was able to find the type of policy that she needed and at a budget point that her church could afford.
Get A Custom Solution With True Texas Church Insurance
True Texas Church Insurance stands ready to offer customized insurance plans matched to the unique needs of Texas churches just like Leslie's and yours. By emphasizing the importance of various liability insurance types and robust property coverage, True Texas Church Insurance ensures the financial protection and stability of churches throughout Texas. Working with our experienced church insurance specialist provides the guidance and expertise necessary to navigate the complex insurance landscape. Insurance For Texans works for churches like yours, and not some big, out of state insurance company.
Leslie’s journey in Tyler has illuminated the critical nature of understanding and effectively managing church insurance costs. Click the button below to uncover strategies for managing your church insurance costs with TRUE Texas Church Insurance. Explore how a partnership with Insurance For Texans can not only demystify your renewal invoice but also secure the future of your church.