Marvin had spent years helping lead his Waco church, and he thought he had a good handle on its finances and operations. But when a hail storm tore through Central Texas and damaged their roof, Marvin found himself dealing with something he didn’t expect—insurance headaches. He had filed a weather damage claim weeks ago. Even though the church had faithfully paid rising premiums for years, they were still waiting for a payout. Worse yet, the claim settlement amount they had recently been presented barely scratched the surface of the repairs they needed for their church building.
Frustrated, Marvin began wondering if all those premiums were worth it. Like many church leaders, he started to feel like insurance coverage might be a scam. If you’ve ever felt the same, you’re not alone. There are three primary reasons churches feel this way. What can Marvin and you do to address these issues so your church is better prepared?
One of Marvin’s biggest frustrations was seeing his church’s premiums rise year after year. They had never filed a claim before, so why were costs going up? And now that they finally needed help, the claim process seemed painfully slow.
This happens because insurance premiums are affected by things outside your church’s control that have an effect on the church insurance market as a whole. Rising repair costs, inflation, and the increasing frequency of Texas weather disasters make it more expensive for insurance companies to provide coverage. When insurance companies handle a high volume of claims after major storms, delays in processing are common.
To avoid feeling stuck like Marvin, it’s important to work with an insurance broker that values quick communication not only during the sales process, but after it is over as well. One thing he felt had lacked during the claims process was transparency. Marvin just needed some communication!
Working with an experienced specialist can help change your perceptions of your church insurance policy. They should be conducting regular reviews of your church insurance plan to help you understand why premiums are changing and how to get the best value for your coverage. You should also be able to expect an explanation of what is going on with your claim. This is not too much to ask!
When Marvin finally took a closer look at his church’s policy, he noticed something else that added to his frustration—exclusions he didn’t expect. The language in church insurance policies matters a lot. More than Marvin realized.
He thought he had excellent coverage, but the financial damage for this claim was mounting quickly. Marvin was able to confirm that the church's policy provided coverage for damage claims due to weather events. What he didn't realize is that the roof lost coverage when it was more than 15 years old. He was caught off guard since this had not been explained by his insurance agent.
This confusion happens because church insurance policies can be packed with industry jargon and complex terms. Most people have an idea of what their policy is supposed to cover, but exclusions or limits of coverage for risks like hail or water damage are often buried in the fine print. Marvin learned this when they filed the claim.
To avoid this, make sure your church’s policy is explained clearly before you purchase it. You should also review it when it renews. Working with an experienced church insurance specialist can help simplify the process. They can break down coverage in plain language and point out any gaps or exclusions that might leave your church vulnerable.
Marvin’s frustration hit its peak when he realized how high the deductible was for the roof damage from the hail storm. The estimate for repairs came in at $35,000, but with a 3% deductible based on their policy’s $1 million limit, the church had to pay $30,000 out of pocket before insurance would cover anything. Getting a $5,000 check left Marvin wondering what the point of having insurance was in the first place.
This scenario is common in Texas, especially for weather-related risks like hail and wind. Many policies now include larger separate deductibles for wind and hail coverage, which can lead to big out-of-pocket costs for churches. Remember, it is a matter of when and not if you will have a hail claim in Texas.
To tackle this issue, churches can explore options like deductible buy-down policies. These add-ons reduce the out-of-pocket burden for specific types of claims, like hail damage. Customizing your coverage with the help of a church insurance specialist can help you balance deductibles, premiums, and coverage limits in a way that makes sense for your budget.
Marvin’s experience shows how important it is to have a policy customized to your church’s specific needs and church ministries. A one-size-fits-all approach to insurance often leaves churches like his feeling shortchanged. By working with a specialist who understands Texas churches, you can create a policy that protects your property and liabilities, meets your budget, and addresses risks that matter most to your ministry.
Marvin’s frustrations are all too common, but they don’t have to be. True Texas Church Insurance, offered exclusively by Insurance For Texans, provides churches with customized solutions that focus on their specific needs. Whether it’s handling claims quickly, breaking down policies clearly, or balancing coverage with deductibles, our specialists work closely with churches across Texas to provide the protection they deserve.
Click the button below to connect with a church insurance specialist today. Let us help you avoid the headaches Marvin faced and find a solution that works for your church and your ministry.