Over the last eighteen months, many churches across Texas have received a non-renewal letter from their insurance provider. The property insurance market for churches in Texas has been wild to say the least. The new problem is the sizable insurance premium increases that are being passed out like goldfish in a preschool class on a Sunday morning to churches all across Texas.
The finance team of a Tyler church sat around a table, looking at their insurance policy renewal notice. The premium had jumped thousands of dollars, and they knew they knew their already thing budget couldn’t afford it. They needed to find a new policy.
One of the key members of the committee was tasked with finding a new option for an insurance policy. They felt like they needed to look for a new insurance carrier that could help them find the peace of mind they needed with the spring storm season coming.
As calls were made looking for new insurance contracts, they kept asking for loss runs. No one offered much insight on what those are exactly, but it was obvious that they were going to be required to get new insurance coverage.
Have you found yourself in the same position? The church insurance agents at Insurance For Texans will always ask you for this pesky report. So we thought it would be best to explain what they are and why they are important for finding new insurance for churches across the state of Texas.
A loss run report is a record of the insurance claims a church has filed over the last few years. It shows every claim, the type of claim, the amount to claim payment, and whether the claim is still open.
Church Insurance companies use this report to see how risky a church is to insure based on their previous experiences. If a church has few or no claims, they are seen as lower potential risk. That can help keep insurance costs down. If a church has frequent small claims or few large claims, insurance companies may charge higher premiums or limit coverage risk options.
The church in Tyler had been paying for insurance for years but had never filed a claim. They thought this would work in their favor, and it should. Without a loss run report, they couldn't prove it.
Unfortunately, church insurance providers do not have a central database of all claim activity like some other types of insurance. When you go looking for a new personal auto policy, you will not be asked for a loss report because the companies report into a central database. Loss runs give insurance companies proof of a church’s claims history since this type of reporting doesn't exist.
When a church applies for new comprehensive insurance coverage, the company looks at these records to decide what types of coverage to offer and how much insurance premium to charge for it. Remember that if there have been frequent claims or large payouts, the insurance company may charge more for, reduce, or deny coverage altogether.
When the Tyler church started calling for quotes, everyone asked for loss runs. Since they didn’t have the report, insurance agents couldn’t give them accurate pricing. Without the right paperwork, they had no way of knowing if they were getting a fair deal.
The best way to get a loss run report is to ask the current insurance provider. Companies are required to provide this report within 10 days. If your current agent or company refuses to provide this to your church leaders, you are being lied to in an attempt to keep you from choosing a new agency for your coverage needs.
Once the report is received by your church leaders, it should be checked for errors. Sometimes claim payments and other details about losses can be inadvertently reported wrong or not updated by the insurance adjusters that worked your claim. Fixing mistakes before submitting the report to a new insurance company can help avoid problems.
The Tyler church contacted their insurer and requested their loss runs skipping their previous agent who was non-responsive to their requests for help with their church property insurance policies. They also worked with a church insurance specialist at Insurance For Texans to review the report for accuracy before it was sent to new insurance providers to get the most comprehensive coverage at the best price. This gave them confidence that they were getting fair quotes based on their real claims history.
Insurance pricing is based on both uncommon and common risks. Loss runs help insurance companies determine that risk by showing your actual claims history with respect to your church insurance property and liability claims. Churches with a clean record may qualify for better rates. Churches with a history of claims may need extra help finding the right coverage.
Working with an experienced church insurance specialist who offers True Texas Church Insurance will make this process easier. They know how to explain loss runs, fix errors, and find coverage that fits a church’s needs. But remember, it always starts with questions so that they can understand your insurance requirements and the essential types of insurance policies that you need.
True Texas Church Insurance is only offered by Insurance For Texans, and helps churches understand their policies and secure the right coverage. If your church is looking for new insurance, having loss runs ready is the first step. Current policy documents is another.
Click the button below to connect with our church insurance specialists and get started today with securing your new church insurance contract.