Gene works as the administrative pastor for a church in Waco. He has been there long enough to see the ins and outs of how financial resources move around in a church budget. He, along with other volunteer leaders, has worked through the years to keep an eye on the church's insurance policy. They have done this to make sure that their annual budget isn't consumed by the increase in insurance premiums that many Texans have faced the last couple of years.
This noble task has taken a turn this year. Their church had a couple of events that left dings on their claims history. Those dings resulted in a non-renewal notice from the old church insurance company. While the notice was sent with a full sixty days to find new coverage elsewhere, the committee spent a lot of time researching property coverage because of the hail that consumes Texas properties.
Gene now faces a pressing dilemma as all of that research has left him with just 48 hours to secure new coverage before the old policy expires. The urgency of this situation weighs heavily on him, as the potential for being uninsured, even temporarily, could expose the church to significant financial risk. That's what led him to call our office to find a new insurance provider for his church property and liability needs.
In the past, Gene had been able to move things along fairly quickly to secure the proper coverage for his church, so it didn't occur to him that he needed to move quickly this time. The insurance business has changed for Texas churches and now Gene could be in a bad place. So what exactly changed?
What Is Happening In Today's Church Insurance Market In Texas
The church insurance market in Texas is currently undergoing significant changes after several years of substantial property losses and policies being underpriced. Many church insurance providers have left the marketplace altogether, or are tightening their underwriting standards to levels that many have not experienced. Gene's church got the short end of the stick due to their own claims along with the increased claims and losses statewide. This shift has left numerous churches like Gene’s scrambling to find new coverage as their existing policies are not being renewed. And when a glut of new churches are looking for coverage of those large church buildings, you have a recipe for disaster. So what should Gene and his church have done differently?
Finding the Right Church Insurance Agent
The value of an experienced church insurance agent is always important, but especially so in the turbulent market that is providing insurance to churches in Texas currently. A church insurance specialist helps navigate the complexities of church insurance so that churches can secure policies that not only meet their immediate needs but also provide long-term stability. These specialists understand the nuances of religious organization coverage and can help you with your church's special needs and ministries. Why are specialized church insurance agencies so desperately needed right now?
Understanding Church Insurance Companies
At its base, church insurance is a specialized niche within commercial insurance. Many volunteer leaders in Texas don't understand that the policies are designed to address the unique activities and risks associated with religious operations. Along with that, commercial property insurance in Texas has become a problem. The large hail events that we receive and the even larger roof lines that churches possess has made securing church property insurance harder than ever.
And remember those tightened underwriting requirements we mentioned earlier, well those aren't just on property coverage. They are also affecting the liability policies that churches need to protect themselves from claims made that create financial losses for the church. This is why most church leaders are seeking comprehensive coverage when they begin to look for new coverage.
Why Church Insurance Companies Are Moving Slower Than Ever
One thing that we always point out to people who want or need to talk about insurance is that insurance companies crave stability. They want to understand the insurance risk that they are bringing on their books that will potentially result in a damage claim of some sort. The less that the companies understand, the more that they will push back.
The slowdown in policy issuance is largely due to insurers reassessing risk profiles in light of recent market exits and the increasing cost and frequency of claims. They simply don't feel like they have an understanding of what they are covering. Churches are often involved in a range of complex activities that have proven to be risk-prone. Insurers are taking more time to ensure that they fully understand the risks before committing to coverage.
Assessing Church Needs
A thorough assessment of a church’s specific needs is the first critical step in obtaining appropriate proper coverage. The more that your independent agent can understand and articulate your property, activities, and missions, the better that they can explain it to the underwriters. This includes evaluating the church's property conditions, security measures, and safety plans for activities. Understanding these elements helps in identifying the right coverage components that address potential risks effectively.
Evaluating a church’s property and ministries helps in understanding the scope of coverage needed. Factors like the size of the property, the age of the property and its roof, the value of assets, and the nature of church activities play a vital role in determining the insurance requirements. This evaluation is essential for ensuring that all aspects of the church are protected. If your church insurance agent has not done this, there is a chance that your specific type of claim could be denied later.
Matching Your Church Needs To Insurance Coverages
The process of matching a church’s needs with suitable insurance coverages involves a detailed analysis of the church’s operations and potential risks. This matching ensures that the church is neither underinsured nor overpaying for unnecessary coverage. With the cost of insurance being elevated as much as it is, this becomes more important than ever. But remember, commonly needed coverages include property protection, liability insurance, and specific policies for high-value items like musical instruments and art.
How Quickly Can You Get Coverage?
Gene understood these factors, but he wanted a bottom line answer. He needed to know just how quickly his church could secure replacement coverage. Despite the challenges, securing insurance coverage quickly is possible with the right approach. This includes working with an agile and experienced insurance agency that can expedite the application and approval process. Churches need to present comprehensive information about their operations and needs upfront to speed up the process.
This process includes having a full copy of your expiring coverage, loss runs that show prior claim history, completed applications sent by your agent, and other information as requested. But you also need to realize that when you are trying to secure this insurance policy in less than a full week, you will likely end up with a very high price or church insurance coverages that may not be quite as robust as you first hoped.
Securing True Texas Church Insurance
Securing adequate coverage through True Texas Church Insurance involves partnering with experts who specialize in church policies. These professionals work diligently to match Texas churches with insurance solutions that address both common and unique risks and can only be found at Insurance For Texans. Their expertise ensures that churches like Gene’s can obtain necessary coverage, though it may not be quite as fast as you hope!
Gene's journey to quickly securing new insurance coverage for his church in Waco is a testament to the challenges and resilience of Texas churches today. Click the button below to discover the rapid coverage options available through TRUE Texas Church Insurance, ensuring your church remains protected in these uncertain times.