When your church has been around for more than 100 years, it has seen a thing or two. This particular old, brick church building in Tyler had weathered a lot over the last decade as severe thunderstorms have become more frequent and destructive.
The last strong spring storm rolled through and it was obvious they had roof damage. Water got in and caused widespread damage to church property. It was time to see about the property coverage they had bought.
Like they always had before, the church filed an insurance claim expecting to get help with the repairs and roof replacement. But this time around, the payout wasn’t enough to cover all of the work for the extensive damage. In fact, it fell short by tens of thousands of dollars. The board was shocked to find out their policy had limits and exclusions in their property coverage that cut their total payment down. That church isn’t alone. This kind of thing is happening to ministries all over Texas. How?
Texas Is Getting Hammered By Catastrophic Claims
It is no secret that storms are hitting harder and more often all across this state. Texas sees more billion-dollar weather events than any other state. Hail, wind, and freezing temps have caused huge amounts of property damage to churches, homes, and other buildings across Texas.
Because of the massive amount of property damage claims, church insurance companies are changing how they write church property insurance policies. Your church is likely seeing increasing premiums and decreasing coverage options to protect against loss to church property.
Churches like the one in Tyler are getting caught in the middle of this shift insurance coverage changes. As the storms continue to swell, churches across the state will need to look closely at what their church insurance policies actually cover more than ever.
Wind and Hail Coverage May Not Be Included Anymore
One big surprise for many churches is that wind and hail coverage may no longer be included in their standard church property insurance policy. The policy may not say it outright, but the insurance providers are finding unique ways to remove it from your coverage options.
The Tyler church had a hail deductible that was 5% of their total building value. Since their building was valued at $1,000,000, that meant they were responsible for the first $50,000 of a covered hail claim. Their roof replacement was going to cost them about $50,000, which meant that they would have no financial compensation for their damage if the water had not gotten into the building.
This gap in coverage left them reeling when they began the repairs. It’s important to understand what your deductible really means before the next storm rolls through.
Roof Sublimits Are Quietly Capping Coverage
Another big surprise that many churches are discovering is a word called a sublimit. This didn't affect the Tyler church, but churches with older roofs are now having special rules placed on them.
A sublimit is a cap on how much the insurance company will pay on a property damage claims from weather. These sublimits can be buried in the policy details and catch your church unaware. Instead of getting a brand-new roof paid for, your church will get a check based on that cap in the coverage amount even if the amount doesn't come close to covering the repair.
Our agents are seeing more and more insurance carriers do this, especially for older buildings. That’s why churches need to ask how their roof is covered before disaster strikes.
Policy Changes Are Being Made Behind the Scenes
Each year, many churches just renew their policy without reading all the fine print. Everyone is feeling the increase in the insurance premiums. But beyond those increases, sometimes those renewals come with other big changes that no one talks about if you aren't doing a review.
That’s what happened in Tyler. The church had been with the same insurance carrier for years. Over time, the policy was changed to limit roof coverage, add higher deductibles, and take away full replacement for certain damages. That's what led to their church insurance claim being woefully short of the funds they needed to perform all of the repairs.
Older buildings and historic sanctuaries are most at risk for these kinds of changes. If you don’t know what to look for, you might not find out until after a claim is denied. This is why you need an experienced church insurance specialist looking at your church insurance policy.
You Need More Than Just a Quote
The Tyler church learned that auto-pilot wasn’t enough. They had picked the cheapest option a few years ago, thinking it would save money. But that low price eventually left them with coverage that didn’t work when they needed it most.
The church in Tyler found a way to repair their precious church building. It unfortunately involved borrowing money, but they found a way to carry on with their mission. But that bad experience led them to call Insurance For Texans in hopes to find the right types of coverage for their situation. True Texas Church Insurance was created to address your situation.
Churches in Texas, including yours, need more than just another quote. They need a plan that matches the way they do ministry with the real risks that come from living and serving here. That’s where working with someone who truly understands church insurance makes all the difference.
Click the button below to protect your sanctuary, your ministries, and your mission with True Texas Church Insurance.