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    More Isn’t Better: Why Multiple Church Insurance Agents Can Backfire

    Posted by Amanda Minter on Aug 26, 2024 5:12:58 PM
    Amanda Minter

    Ben was determined to find the best insurance coverage for his congregation in Amarillo. With the church’s budget tighter than ever and the need for comprehensive protection growing, Ben thought he had the perfect plan: reach out to five different church insurance agents to get a range of quotes over the next few weeks as his church's insurance policy was set to renew in two months. However, his confidence quickly turned to confusion when two of the agents declined to offer him a quote as he worked through the process. Ben couldn’t understand why.

    When Ben had looked for insurance for his home or car in the past, he had always believed that the more quotes he received, the better equipped he’d be to make an informed decision. Never in those searches was he turned down asking for a quote for even basic coverage, much less adequate coverage. With this challenge to his process, he’s left wondering what went wrong and whether he made a mistake in his approach.

    As Ben began to get the first church insurance quotes back from two of the agents he contacted and reflected on what he was seeing, his frustration grew. The building limits for church property were not what he expected and the additional costs were even worse than expected. Ben was beginning to freak out a bit. The last thing he wanted was to put his church at risk by missing out on the best insurance options, but he also did not realize that the cost of insurance had gone so crazy! The question nagging at him was simple: “What did I do wrong?”

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    Explanation of Why So Many Texas Churches Are Shopping for Insurance

    Ben’s situation is not unique. Many Texas churches and religious organizations like his, are actively shopping for insurance due to an unsettling trend in our great state. They are actively being non-renewed by their current insurance companies. With rising costs and evolving risks, church insurance providers are reassessing their portfolios, leaving many churches in a bind. For church's like Ben’s, managing tight budgets is a top priority in this inflationary environment. But is ensuring that their congregation and property are adequately protected is also of utmost importance given the amount of hail damage claims we see annually in Texas. Potential risks for legal and property claims are real and ever-present, compelling churches to seek more specialized coverage options that provide the necessary protection for their church.

    Texas churches are finding themselves in a difficult position, where they need to secure insurance solutions that offer adequate protection without breaking the bank. The search for the right insurance coverage is not just about finding any policy—it’s about finding the right policy that meets the specific needs of each church. Ben’s desire to shop around was well-intentioned, but it’s important to understand the complexities of the insurance marketplace and how to navigate it effectively.

    Understanding Where Your Church Can Get Property Insurance Today

    Traditionally, churches could obtain insurance from a variety of sources, including agencies that didn’t necessarily specialize in church coverage. However, the landscape has changed over the last 24 months, and many Texas churches can no longer secure comprehensive property insurance through these traditional channels. This market shift means that churches are now relying on the excess and surplus market to cover many properties or those that have claims history in the recent past. This shift means that finding the right coverage for church property is more challenging than ever before.

    Ben’s church, like many others, would benefit from working with an experienced church insurance expert. These specialists have the expertise to navigate the complex insurance landscape, working with the best underwriters to secure property insurance even in the excess and surplus markets. Where Ben had miscalculated in his original plan is that only one agency can receive a quote back from an insurance company in the marketplace. This meant that contacting multiple agents didn't help his search at all.

    When More Isn’t Better: Why Multiple Church Insurance Quotes Can Backfire

    Benefits of Comparing Different Insurance Quotes

    Ben’s approach to seeking multiple quotes wasn’t entirely misguided. There are clear benefits to comparing different insurance proposals, especially when you work with an experienced church insurance agent. These agents bring tailored advice and expertise to the table, ensuring that your church receives the coverage it needs without overspending. By comparing quotes, you can identify the best comprehensive coverage available while potentially saving money—a priority for any church trying to manage its resources wisely.

    However, not all proposals for building coverage or liability coverage are the same. Understanding the financial strength ratings of insurers is vitally important. This ensures that your church is partnering with a provider that is reliable and capable of fulfilling its obligations. By understanding the pros and cons of each quote, Ben could make an informed decision that balances cost with the need for comprehensive protection for his church.

    Can One Church Insurance Agent Get Multiple Quotes?

    What Ben might not have realized is that one church insurance agent can indeed obtain multiple proposals. Independent agents partner with different church insurance carriers who specialize in a range of coverages designed to meet church needs. Working with various insurance providers allows them to customize their search for types of insurance based on the specific coverage needs of the church. This approach ensures that organizations like Ben’s get the most competitive rates and adequate protection for their members.

    It’s important to understand that many people who call themselves brokers are actually independent insurance agents, a distinction that’s often misunderstood. Not all agents have access to more than one company, which can limit their ability to serve a Texas church effectively in a turbulent property insurance marketplace. By choosing an experienced agent with the right connections, Ben could have streamlined his search process and avoided the complications that arose.

    Factors to Consider When Choosing Insurance Agents

    When selecting an insurance provider for your church, it’s essential to choose an agent who specializes in church insurance and understands the unique needs of ministries. Ben needed an agent who could clearly explain policy options and endorsements, helping him to make the best decisions for his church. It’s also critical to select an agent who has relationships with multiple, reputable, financially sound insurance companies. This ensures that your church is not only getting the right coverage but also partnering with a provider that will be there when needed most.

    By focusing on these key qualities, Ben could have ensured that his church was working with an agent who truly understood the complexities of church insurance and could guide him through the process with confidence.

    Is Too Many Cooks in the Kitchen Bad for My Church?

    One of the most common misconceptions that Ben fell victim to is the belief that more agents mean more quotes. In reality, an insurance company will only issue one quote for a church, no matter how many agents bring information to them. When underwriters begin to see the same church being submitted by multiple agents, they may not consider offering better terms and conditions. Instead, they might view the church as high-risk or difficult to place, which can negatively impact the outcome.

    Negotiated Risk Placement by an independent church insurance specialist would have allowed Ben to get the best terms and conditions by consulting with the right underwriter and company to meet his church’s unique needs. In this scenario, less truly is more—fewer agents, but the right agent, can make all the difference.

    True Texas Church Insurance

    Getting True Texas Church Insurance

    For Ben and other church leaders in Texas, obtaining True Texas Church Insurance is about more than just getting a policy—it’s about securing customized coverage tailored to the unique needs of their churches and religious organizations. By working with trusted church insurance specialists, ministries can receive specialized insurance programs that traditional business policies might lack.

    The process begins with determining your church’s unique needs, ministries, and budget. By focusing on these factors and working with a church insurance agency  that uses Negotiated Risk Placement, Ben could have ensured that his church received the best coverage limits at the best price, without the confusion and frustration he experienced.

    Working with Insurance For Texans to Get Coverage

    At the end of the day, Ben needed a partner who truly understood the needs of Texas churches. Insurance For Texans specializes in helping Texas churches protect themselves and their future with customized insurance plans. The goal of True Texas Church Insurance is that the policy coverage matches the church’s ministries, activities, and unique needs is what we do best.

    Insurance For Texans is the only place where you can get True Texas Church Insurance, designed specifically for local, Texas churches whether you are in Amarillo, El Paso, Tyler or somewhere in between. Our experienced church insurance specialists understand the marketplace and the options available to Texas churches, making us the trusted choice for church leaders like Ben.

    Don’t make the same mistake Ben did by overcomplicating the process of securing church insurance. If you’re looking for the best coverage for your church, you need the right partner who understands your unique needs.

    Click The Button Below To Find Out How To Avoid Common Mistakes When Getting Church Insurance Quotes.

     

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    Topics: liability, property, Church Insurance