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?
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:
2. Peace of Mind: Knowing the state backs your policy offers reassurance, especially if your church faces a major loss.
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:
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:
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:
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, 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.
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