Unless your church has been in hiding during 2024, you are well aware of the challenges that Texas churches have faced with their insurance coverage. The insurance companies seemed to have lost their minds sending out non-renewal notices, cancellation notices, and premium increases that should make them blush! While all of this is true, the smaller churches have been grossly more affected by these challenges.
We helped a small church in Houston as they wrestled with an increase in their insurance premiums that were unsustainable. This was after they had a roof claim after a big hail storm created roof damage which unfortunately was not fully covered. They struggled to pay for repairs.
When their policy had renewed, the insurance carrier had changed their insurance policy into actual cash value and they didn't realize it. And their old agent had not communicated that with them until it was too late.
Stories like this are common for Texas churches. These last several months have been brutal. As we move into 2025, it’s important to know about the biggest insurance challenges that churches will face. Here are three things every Texas church should know to protect their ministry in the year ahead.
Rising Insurance Premiums
Insurance premiums have been going up for years, and 2025 will be no different. Texas churches face some of the highest risks in the country due to hailstorms, big wind storms, and all the other severe weather we seem to accumulate. Claim costs keep going up due to inflation and rising construction costs. It shouldn't be a surprise to anyone that premiums are increasing again. But it has to be said.
For many churches, these higher premiums have strained their budgets to the point of dropping property coverage in some places. We don't recommend this, but it is a stark reality for churches with older buildings that they don't fill as congregations have shrunk. We always stress that these churches have to keep their liability policies in place to protect against legal costs that can arise due to unforeseen accidents or staff people doing dumb things.
Planning ahead is the key to this issue. Work with an insurance specialist who understands the Texas market can help you find new solutions that may be unknown to the less experienced. Even if your denomination or other partnerships attempt a captive insurance pool to help with these problems, initial participation will likely be limited. As a result, it is important to make sure that you have options available.
Exclusions and Gaps in Coverage
The second major challenge for 2025 is that many insurance policies are changing what they cover. Insurance companies have begun putting in exclusions or limitations for hail damage, water damage from burst pipes, or abuse liability. This is an attempt to save on claims as these claims are more common than ever. Don't find out about these changes from your insurance provider when you file a claim!
To avoid surprises, review your policy regularly. More importantly, work with an church insurance agent who will look for exclusions or gaps when your renewal is being issued. Talking about these potential pitfalls and finding ways to fill those gaps in coverage is what a great agent does on your behalf. Make sure they are seeking your financial security in this process!
Cyber Liability Is More Important Than Ever
Our lives are more online than ever before. Churches have set up platforms that allow for automatic giving. As churches use more digital tools like these, they become targets for cyberattacks. Hackers look for sensitive data like financial information and private information about members, which can put your church at risk.
A cyberattack can be expensive. Paying for legal fees, recovering stolen data, and repairing damage to your church’s reputation is not inexpensive or inconsequential. Many churches don’t have cyber liability insurance, leaving them unprotected if an attack happens. Adding this coverage can help cover costs and protect your church if hackers strike and likely isn't as expensive as you think. Training your staff and volunteers on basic cybersecurity can also reduce your risks and should be part of your comprehensive safety plan.
How Your Church Can Stay Ahead in 2025
The challenges of rising costs, changing policies, and new risks might seem overwhelming, but there are ways to prepare. Start by reviewing your insurance policy with your agent and looking for areas that might leave you exposed. Make it a habit to assess your risks and address your coverage as needed. This comes by looking at your church's unique needs and ministries.
This happens when you work with an experienced church insurance specialist who is well versed in Texas churches. They understand the unique challenges our churches face and can help you find solutions that fit your needs.
Protect Your Ministry with True Texas Church Insurance
The risks Texas churches face in 2025 are real, but they don’t have to be overwhelming. When you have the right coverage, your church can focus on its mission without worrying about what might happen. That is a peace of mind that allows you to serve your community well.
True Texas Church Insurance can only be found at Insurance For Texans. This program provides coverage designed for Texas churches. We will ask you many questions up front, so that our team can design a plan that is unique to your church. Our agents have helped churches all across the state of many shapes and sizes prepare for risks and protect their ministries.
Click the button below to talk to a church insurance specialist and learn how to protect your church in 2025 and beyond.