When the phone rings at Insurance For Texans, there is a good chance that the person on the other end of that call is frustrated or worried. It's the nature of being in insurance. But this year, the calls that have come from pastors, financial secretaries, or elders who are very frustrated looking for new insurance coverage for their church is enormous.
William is senior administrator at a church on the outskirts of San Antonio. When he called our office last week, it was a story that we have begun to hear over and over again. William had received a notice of non-renewal from a large church insurance provider who has traditionally offered insurance policies to Texas churches at affordable premium costs. The notice for William's church had come in plenty of time to find proper coverage, but he was running into a massive roadblock.
William had received a couple of quotes from national insurance agencies that didn't understand Texas and the increase in premiums on these quotes were double or even triple the church's previous cost. This dramatic increase in insurance premiums now had William scrambling for answers and solutions to the price equation. He needed to understand what could be causing such a massive change. He also was looking for a way that his church could navigate this financial challenge of these new church insurance costs?
The Rising Cost of Texas Church Insurance
The landscape of all property coverage in Texas is in a time turmoil right now due to catastrophic storms that have plagued our great state for the last several years. Unfortunately, church insurance in Texas is undergoing significant changes beyond just that turmoil. Many church insurance providers have exited the Texas market completely. This is how William ended up here. For those companies that do remain, they are issuing fewer policies and tightening their underwriting standards to unprecedented levels.
This shift is driven by various factors. We have seen increased insurance claims from major storms and other weather related events all around the state. That has increased the high risk associated with insuring properties in Texas. Liability insurance has also begun to see pressures from higher medical costs. For churches like William's, these changes mean significantly higher premiums as well as significantly greater difficulty in finding new church insurance coverage at all.
Increased Frequency and Severity of Weather Claims
You would have to be living under a rock to not realize that the frequency and severity of weather-related claims in Texas have surged. This is predominantly due to changes in weather patterns, population growth, and the continued urbanization of our state. More people living in densely populated hail prone areas is not conducive to affordable church insurance options. As Texas has seen more frequent and intense weather events, such as hurricanes, hailstorms, and floods, these events have led to higher claim payouts. Has there ever been an insurer that has not passed this on to policyholders through increased premiums. William knew the answer to this question.
Higher Medical Costs in Liability Claims
We've all seen the effects of inflation over the last two years. But higher medical costs have significantly impacted liability policy claims. Your church's risk of a liability claim goes up as the size of a congregation increases and the variety of events hosted grows. Bigger Texas churches doing more outreach activities has increased the overall danger exposure that each congregation is experiencing and can require different types of coverage to help keep costs down. This is why consulting with an insurance expert who specializes in churches can help people like William identify adequate coverage limits based on these risks with the correct liability policy.
Church-Specific Risks and Liabilities
Churches face unique risks and liabilities that can influence the insurance industry. We have seen denominational changes over theological issues cause problems for church insurance providers. If your church owns a car, van, or bus, understanding how different drivers affect your business auto insurance can be tough to comprehend. And we haven't touched on the complexities of church insurance with large gatherings, volunteers working with children, and international mission trips. The variety of risks necessitate highly specialized coverage, which is often resulting in higher premiums to adequately protect against potential claims.
Specific Challenges Faced by Texas Churches in Obtaining Affordable Insurance Coverage
All of these factors and companies like Church Mutual non-renewing entire portfolios of customers have taken the challenges listed above and made the church insurance business in Texas more complicated than it traditionally has been. It has left Texas churches all over the state grappling with securing affordable church insurance costs. And William's church is no different. But now that he had an understanding of the difficulties in finding coverage, he wanted to better understand the additional costs he was facing for the new policy.
Church Insurance Companies Leaving Texas
Multiple church insurance companies are exiting the Texas market at once. Companies like Church Mutual have been underpriced for many years and can simply no longer stomach the losses thinking that the situation will improve. This has caused a flood of Texas churches looking for new building coverage as well as liability.
At the same time, the companies that are still offering policies here in Texas do not want to take on new business. This all goes back to the increase in claims from natural disasters and weather events along with the effects of inflation causing them to lose money. Why would they want to take on new business?
Lack of Competition Among Church Insurance Companies in Texas
The trend here is that none of the church insurance companies want to offer any forms of coverage to William's church. A few years ago, there were multiple options to place coverage on church buildings, Mother's Day Out Programs, overnight youth events. Now with the much tighter underwriting standards it has become difficult to find more than one option. This lack of competition for your house of worship insurance has led to higher premiums with more restrictive coverage limits offered. The light bulb went on in William's mind. He didn't like it, but he now understood it.
Get True Texas Church Insurance
TRUE Texas Church Insurance offers a solution to some of these challenges. While it is not capable of eliminating your annual premium increase, it works to provide comprehensive coverage that is tailored to meet the unique needs of your Texas church. Partnering with an experienced church insurance agent who specializes in Texas policies allows William to find adequate protection that can address both the common and unique risks of Texas churches effectively. TRUE Texas Church Insurance provides the peace of mind that comes with knowing your church has proper coverage even with a tight budget.
Working With Insurance For Texans To Get Coverage
Insurance For Texans specializes in helping Texas churches protect themselves with customized insurance plans. and is the only place that you can get True Texas Church Insurance. Our agents work diligently to match your church's activities and size with the appropriate coverage. By asking the right questions, we ensure that your policy covers the specific needs and risks associated with your church. This tailored approach helps manage costs while providing comprehensive protection.
William’s experience in San Antonio underscores the importance of understanding the factors behind rising insurance costs and exploring specialized solutions. Click the button below to find solutions with TRUE Texas Church Insurance, so that your church remains protected and financially secure amidst these changes.