Are you responsible for finding insurance for your church in Texas? It can be a daunting task! One important decision you'll face when you are choosing your church’s insurance policy is whether the company is an admitted or a non-admitted insurance company.
This may seem confusing. But, don’t worry, we are here to break it down for you!
Let's meet Charles, a dedicated church member in Frisco. He's tasked with finding new insurance for his church after receiving a non-renewal notice from their previous carrier.
Charles is comparing two proposals, one from an admitted insurance company and another from a non-admitted one. But what's the difference?
What is an Admitted Insurance Company?
An admitted insurance company is licensed and regulated by the Texas Department of Insurance. Think of those big insurance companies you see advertising on TV.
Benefits of Admitted Insurance:
- Guaranty Fund Protection: If the insurance company goes bankrupt, a state-backed fund will help cover claims, providing a safety net for your church.
2. Peace of Mind: Knowing the state backs your policy offers reassurance, especially if your church faces a major loss.
What is a Non-Admitted Insurance Company?
A non-admitted insurance company is not licensed by the state of Texas. However, it can still legally provide coverage. Non-admitted insurers are more common for commercial property and casualty insurance, which includes church insurance.
Benefits of Non-Admitted Insurance:
- Flexibility: Non-admitted insurers aren't subject to the same regulations as admitted insurers, allowing them to offer customized policies for churches with unique or high-risk properties.
2. Tailored Coverage: This is particularly important for churches with older buildings, specialized ministries, or locations in high-risk areas.
Drawbacks of Non-Admitted Insurance:
- No Guaranty Fund Protection: If a non-admitted insurer fails, your church won't have the state-backed safety net.
How Do You Choose?
When to Choose Admitted Insurance:
Admitted insurance is a good choice for churches with traditional risks, such as general commercial property coverage and liability protection. The state-backed protection offers peace of mind.
When to Consider Non-Admitted Insurance:
Non-admitted insurance might be a better option for churches facing unique or high-risk circumstances, like Charles' church with its older building in a hail-prone area.68
Charles found that a non-admitted insurer could provide better property coverage at a comparable annual cost due to their flexibility in underwriting.This option offered better risk management by reducing potential out-of-pocket expenses during a claim.
Key Decision Factors:
- Risk Profile of the Church: Consider the age of your building, location, and specific ministries.9
- Budget: Compare quotes from both admitted and non-admitted insurers.9
- Financial Stability Ratings: Research the financial strength of potential insurers.9
- Expert Guidance: Work with an experienced church insurance specialist to understand the nuances of admitted and non-admitted policies.10
Finding the Right Solution
Choosing the right insurance company is crucial for protecting your church and its congregation. It's not just about the annual cost but the total cost of risk
True Texas Church Insurance Can Help
True Texas Church Insurance, offered through Insurance For Texans, provides customized solutions to meet each church's unique needs. Our specialists will ask questions to understand your church's mission, ministries, and specific requirements.
With guidance from specialists who understand Texas churches, you can feel confident that your congregation is protected, no matter which path you choose.
Click the button below to cover your church.
