Every time a small church gets hit with a 30% rate increase on their insurance premium, another congregation gets closer to closing their doors. For years, they have managed to balance their budgets carefully, but these latest jumps in insurance costs make things tough.
Churches are left wondering why the costs for insurance coverage are climbing so fast and what they can do to keep their church protected. You are not alone. Premiums are rising for Texas churches across the board. Let’s make sure you can understand why this is happening and what your church can do to manage the challenges.
Texas is known for its wild weather that produces freak natural disasters all over the state. From hailstorms to hurricanes, these events cause a lot of damage every year to property big and small. Insurance carriers pay billions of dollars in claims for single catastrophic weather events when they are big enough.
As these events happen more often, insurance companies need to charge higher average premiums to cover the costs of the claims. And that's before you factor in the effects of inflation on the cost of repairs and construction.
For churches, weather damage can be expensive due to larger roofs and expensive windows. Roofs, windows, and gutters take the biggest hits when that perfect storm hits your house of worship. If you have an older building the risk of damage is increased, which makes them more expensive to insure for the same level of coverage.
It’s no secret that the cost of everything has gone up in recent years. The source of the inflation doesn't change that building materials, labor, and repair costs have all climbed substantially. That also means insurance companies have to pay more when a claim is filed. For churches, this has a big impact. Even a small repair now costs much more than it did a few years ago.
Smaller churches with older buildings that were built when the congregation was larger may feel this even more. The unused space can have damage that goes unseen for a period of time, which can make the damage worse. And we all know that repairs on older properties often take more time and money due to the complexity of the project. This is another reason annual increases in premiums are going up and challenging traditional budget assumptions.
While Texas churches are dealing with storms and local risks, insurance companies are also paying for large disasters across the country. Hurricanes, wildfires, and other major events cost billions of dollars. And that doesn't include costs from liability insurance claims too. Even if your church hasn’t filed a claim recently, the overall costs of these events make church insurance rates more expensive for everyone unfortunately.
Churches of all sizes are making hard decisions about their budget assumptions for 2025. The increases in monthly premiums have required larger houses of worship to consider highly customized levels of coverage. That has made them think differently about how to cover their entire property to find affordable coverage limits.
For smaller churches, they might feel like they have to cut current coverage on property altogether to make tight budgets work. While we don’t recommend this, it’s a reality for many churches with older or underused buildings.
Even when cutting coverage isn’t an option, higher premiums can take money away from other parts of the church ministries, making it harder to serve the community. Working with an expert in Texas church insurance can help your church find affordable insurance coverage whether you are big or small.
An experienced church insurance specialist can help you find options to help find a balanced budget without cutting an important level of coverage. They know the Texas market and can help you explore solutions like higher deductibles or alternative insurance options that work for your church. Their first step is going to be fact finding to determine your specific ministry needs and property conditions.
Those older roofs, outdated plumbing or other aging infrastructure means that there is a higher risk of something going wrong. Since the insurance companies know this and charge a higher monthly premium, your individual church may need to either make difficult decisions or get creative with the plan designs of your insurance coverage. A church insurance specialist can help with this.
Your church insurance specialist will be able to take a close look at your current insurance policy. What are the deductibles? Are there areas where coverage could be adjusted to save money? Small changes can sometimes make a big difference. For example, choosing a higher deductible on a base policy coupled with a deductible buy down policy might lower your premium enough to keep coverage affordable.
The other help that can be done is preventing claims before they happen. Regular roof inspections, updated safety systems, and keeping your property well-maintained can lower your chances of needing to file a claim. Insurance companies often look favorably on churches that take steps to reduce risks, and this could help keep your premiums lower.
The rising cost of insurance can feel overwhelming, but there are ways to manage it. By understanding why premiums are going up and working with someone who knows how to navigate the Texas insurance market, your church can stay protected without breaking the bank.
True Texas Church Insurance, offered only by Insurance For Texans, is here to help. Our team has worked with churches all over Texas to create customized insurance plans that meet their needs and budgets. We start by asking questions so that we can learn your specific needs before ever making a recommendation.
Click the button below to connect with a Texas church insurance specialist today. Let’s find the right solution to protect your ministry in 2025 and beyond.