The good news was that Jim’s church in Lubbock had finally secured a new insurance policy after weeks of searching after they received their non-renewal notice in the mail. The bad news? A few weeks later, they got an unexpected notice from the insurer stating that their property had failed the inspection. Jim felt blindsided. After all the effort they’d put into getting coverage, now they were at risk of losing it before it even began. With the congregation counting on him, Jim needed answers—and fast. What went wrong, and more importantly, what should they do next?
If your church is like Jim’s and has failed a property inspection for a new church insurance policy, it’s essential to understand why it happened and how to move forward. When Jim called our office after the inspection notice came in, we walked through the reasons why his church failed, the immediate steps to take, and how to address specific issues to protect his coverage and congregation.
Understanding Why Your Church Failed the Property Inspection
Many churches, especially those housed in older church buildings or with unique layouts, face challenges during property inspections. The inspector can often find things that church leaders haven't thought of in years that could lead to potential risks of claims. Jim's church had very specific issues, but there are several reasons your church might have failed. Understanding these can help you address the issues effectively.
Structural Damage Issues
Structural problems such as roof damage, foundation cracks, or outdated electrical systems are common culprits in Texas. An aging roof or a foundation issue can signal to the insurer that the property might be at risk for water damage, collapse, or fire hazards. For Jim’s church in Lubbock, it turned out that an old electrical system and a damaged roof from hail were the primary reasons they failed the inspection. Those breaker panels from the 1970s just don't cut it anymore.
Safety Concerns
Safety is a top priority for any insurance company since the potential risk for a claim is elevated. Inspectors often look for faulty fire alarms, insufficient emergency exits, or inadequate security measures. These concerns can significantly increase the risk of injury or loss, making them red flags during inspections. In Jim’s case, the church’s fire alarm system wasn’t monitored, and their emergency exit signage was outdated. Both of these items are easy to repair from a corrective action standpoint, and Jim understood why the insurance provider wanted them addressed.
Hazardous Conditions
Hazardous conditions such as mold, water damage, or the presence of hazardous materials can also lead to a failed inspection. These issues not only pose health risks to the congregation but can also result in costly insurance claims. If mold is found in the church or water damage is left unaddressed, it can lead to larger, more expensive problems down the road. Fortunately for Jim's church, this wasn't an issue.
The Role of the Inspector
Inspectors are tasked with identifying potential risks that could lead to future insurance claims that can require legal defense or create financial risks through payouts. They conduct a thorough examination of the property to assess its condition and safety. Their findings help the insurance company determine the appropriate level of coverage and whether any adjustments need to be made to the policy.
It’s important to remember that the goal of the inspection is not to penalize the church but to highlight areas that need attention. By addressing these issues, your church can be better protected against unexpected events just like Jim's.
Immediate Steps to Take After Failing a Property Inspection
Failing a property inspection can feel overwhelming, but it’s not the end of the road. We had to help Jim understand this and approach the report as a way to improve the overall condition of his church. Here are the steps we took with Jim to get the church back on track.
Step 1: Review the Inspection Report Thoroughly
The first thing Jim did was sit down with the inspection report and go through it carefully. Understanding the findings is important to determining the next steps. Each issue highlighted by the inspector needs to be reviewed in detail. Identify which problems are minor and which require immediate attention to meet the insurer’s requirements to avoid either a cancellation or nonrenewal of church insurance notice.
Step 2: Communicate with Your Insurance Agent
Once Jim had a good grasp of the issues, he set up a meeting with his insurance agent. It’s important to have a clear conversation about the findings and get professional advice on how to address them. Your experienced church insurance agent can provide guidance on the necessary steps to rectify the issues and keep your coverage intact. In Jim’s case, his agent at Insurance For Texans helped him prioritize the repairs and offered resources for finding reliable contractors.
Step 3: Create an Action Plan for Repairs
With the information from the inspection report and advice from his insurance broker, Jim developed an action plan for the church leaders. This plan included a budget for repairs and a timeline for completing them. Whether it’s repairing structural issues, updating safety systems, or dealing with hazardous conditions, having a clear plan is key. If the repairs are extensive, it might be necessary to hire licensed professionals to handle the work efficiently and safely.
Step 4: Update The Insurance Company Of Repairs
While it may seem obvious to you, many Texas churches do not follow through on updating the insurance company when the repairs or remediation items are completed. An experienced church insurance broker who is well versed in this process will be in communication with you to make sure that the repairs are done and that the insurance company knows to avoid adverse actions on the policy or coverage.
How to Address Specific Issues Identified in the Inspection
Different issues require different solutions. Here’s a short list of how to tackle some of the most common problems.
Structural Problems
Roof and Foundation Repairs: If your inspection flagged roof damage or foundation issues, it’s important to address these first. Roof repairs can prevent water damage, while fixing foundation cracks can prevent structural failure. Jim’s church, for example, needed to replace several damaged roof shingles and repair a crack in the foundation that had been causing water seepage.
Updating Electrical Systems: An outdated electrical system is a fire hazard waiting to happen. Upgrading your church’s electrical system to meet current safety standards can prevent potential fires and reduce your insurance risk.
Improving Safety and Security Measures
Installing Fire Alarms and Sprinklers: Up-to-date fire safety systems are a must. If your inspection highlighted issues with your fire alarms or sprinklers, it’s time to upgrade. Jim’s church had to replace their outdated fire alarm system and get it connected to a monitoring system to meet the insurer’s requirements.
Enhancing Security: Simple improvements like upgrading locks, installing security cameras, and ensuring proper lighting can make a big difference. These measures can deter vandalism and theft, which are often concerns for insurers.
Dealing with Hazardous Conditions
Mold Remediation: If your inspection identified mold, it’s important to remove it safely and completely. Hire a professional remediation service to ensure that the mold is thoroughly eliminated and the area is properly treated to prevent future growth.
Handling Water Damage: Water damage can lead to structural problems and mold growth if left unaddressed. Fix any leaks, replace damaged materials, and consider waterproofing areas prone to moisture to prevent future issues.
Working with Insurance For Texans to Protect Your Coverage
True Texas Church Insurance can only be found at Insurance For Texans. Our independent insurance agency understands that dealing with a failed inspection can be stressful. We offer specialized support to help churches like Jim’s navigate the process. Our team is experienced in working with Texas churches and can provide the guidance you need to address inspection issues effectively.
Tailored Solutions
Every church is unique, and so are its insurance needs. We work with you to find customized coverage options that address your specific situation. Whether your church only needs liability or has a complex property situation, we’re here to help you find the coverage your church needs and get it in place. Our goal is to assess your unique needs and ministries so that we can provide valuable guidance to your church just like we did with Jim.
Partnering with a Specialist
Using True Texas Church Insurance means having a partner who understands the unique needs of Texas churches. The expertise and proactive support found at Insurance For Texans can help you manage risks effectively and keep your church properly protected from whatever might come your way.
Failing a property inspection is a setback, but it’s not the end of the road. By taking immediate steps to address the issues, communicating with your agent, and making necessary repairs, you can protect your church’s coverage and ensure a safe environment for your congregation. Jim found this out by working with our independent insurance agency.
Click the button below to learn how to address inspection issues and protect your church’s coverage with True Texas Church Insurance. Let us help you navigate the process and secure the right coverage for your ministry’s needs. Jim’s church in Lubbock found the support they needed, and so can yours.