Private schools in Texas have a lot going for them—tailored curriculums, tight-knit communities, and campuses built to foster learning. The population growth in Texas has allowed for many schools to expand and thrive in some unexpected ways. But growth also brings challenges that we cannot always account for.
When it comes to securing property insurance for your school, administrators and their board of directors often find themselves facing challenges that make the process anything but straightforward. Kenny's school in Austin was expanding with the influx of students. They had an opportunity to secure a new campus that would fit the larger classes, and were currently trying to find property coverage on it. The first declination was a surprise. The second was disappointing. Then it became a bit demoralizing.
Kenny wanted to know why securing property insurance for Texas private schools is such a tricky business. His board of directors wanted to know what steps to take to protect their new campus from the unexpected.
Why Is Property Insurance So Hard for Private Schools in Texas?
Before we tackle the specifics of covering school property, we need to take a look at what is going on with commercial property insurance in Texas right now. Over the last two years, commercial property insurance policies in Texas have seen massive losses. The insurance companies have had to tighten everywhere they can to lose less money.
In other sectors of business insurance, some insurance carriers have quit writing policies, non-renewed prior customers, or have taken massive rate increases. This has led to chaos for not only private schools, but also for public schools, charter schools, and churches!
With that in mind, let's take a look at what is pushing the insurance costs for Kenny's school higher and harder to get.
1. Customized Campuses, Specialized Coverage
Much like other newly constructed school campuses that tend to stand out, Kenny's new campus was not only innovative in their approach to education but also in the design of their campuses. They installed state-of-the-art computer labs and science labs to compliment their new sprawling athletic facilities. These facilities were built to inspire students to the greatness that they are capable of in all arenas.
Unfortunately, insurers don’t see inspiration in these state of the art facilities. They see risk. Especially when looking at guaranteed replacement cost of these facilities when the next big storm hits. Unique or specialized facilities cost more to repair or replace, which leads to higher premiums or complicated coverage types.
2. Texas Weather is Just Different
Speaking of the next storm hitting. In Texas, Mother Nature doesn’t hold back. You likely already realize that. Whether it’s a hurricane rolling in from the Gulf, hailstorms wreaking havoc in Central Texas, a blizzard blowing across the High Plains, or a tornado ripping through North Texas, extreme weather is part of life here.
Throw wildfires in with all of those storms, and private schools insurers are keenly aware of potential risks that create the physical damage for claims. Schools in high-risk areas will face steep premiums, bigger deductibles, or struggle to find coverage at all. Kenny's school felt this on a personal level as they continued to evaluate their options.
3. Aging Infrastructure
One of the reasons that Kenny's school was relocating and looking for coverage, was the age and condition of their current campus. Many private schools in Texas operate in older buildings that were typically hand-me-downs from the churches that started them. While these facilities carry charm, character, and stories, they often come with outdated systems—like wiring, plumbing, or roofs that no longer meet modern standards. Insurance companies can either require costly upgrades as a condition of coverage or make an exclusion for the outdated system. This ads yet another hurdle for school administrators.
4. Operational Complexity
Private schools aren’t just properties—they’re centers of learning, full of people and activity. Kenny's school staff was responsible for more than teaching classes. They also helped produce drama, music, recitals, games, and other functions. While this doesn’t directly impact property insurance, the added operational complexity and need for robust liability insurance translates directly into additional coverage needs. And this brings more requirements and higher insurance costs.
How Private Schools Can Secure the Property Insurance They Need
So given these factors, what could Kenny and his board do to secure the private school insurance coverages that they desperately needed? They were seeking more than just the essential coverage, and wanted to protect themselves against the financial burden that comes when people don't plan well.
1. Partner with a Specialist Who Understands Texas Schools
The first step is finding an independent insurance agent who knows the ins and outs of property insurance for private schools in Texas. It is vitally important that they are an agent with experience insuring property in Texas. This isn’t the time to rely on a one-size-fits-all policy or an out of state person who doesn't understand the nuanced restrictions that come with Texas policies. Work with someone who can help customize the types of insurance coverage to fit your school’s specific needs and risk factors.
2. Get Your Building in Shape
Kenny's new building didn't have to worry about this, but proactive maintenance can go a long way toward making your property insurable—and keeping premiums reasonable.
Focus on:
- Replacing outdated wiring, plumbing, and HVAC systems.
- Reinforcing roofs and windows to withstand severe weather.
- Ensuring fire suppression systems and alarms meet current codes.
The more you show insurers you’re reducing risk, the better your chances of securing quality coverage.
3. Document Everything
When it comes to property insurance, documentation is key. Make sure you have:
- Accurate records of your campus’s layout and construction.
- Detailed maintenance logs.
- A thorough inventory of upgrades and safety features.
This information can help insurers better assess your property and offer more favorable terms for the types of coverage that you need.
4. Plan for the Long Game
If your school struggles to find affordable coverage, consider breaking the process into phases. You can begin with securing the liability coverage that you need to keep your staff and students protected from things you can't always control.
Then work with private school insurance agent who can guide you through the upgrades that will help you secure the best rates on property coverage. Start with essential upgrades to address the most critical risks, then revisit your insurance options as improvements are made.
The Bottom Line for Texas Private Schools
Property insurance is essential for any private school in Texas. While the process of securing coverage may feel daunting, a proactive approach—combined with the right insurance partner—can make all the difference. True Texas Education Insurance is only provided by Insurance For Texans and helps your school find a customized coverage plan that is based on your actual wants and needs. The process starts with more questions than answers, and then matches you to the best solution.
When you shift to focusing on risk reduction, investing in your property, and working with an experienced specialist who understands Texas schools, you can protect your campus and ensure it’s ready to thrive through whatever comes next.
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