Kevin's church outside Austin had seen its fair share of storms over the years. Hail had battered the roof a few times, and strong winds had shaken the old building more than once. But they had always managed to make repairs and move forward.
That changed when they got their insurance coverage renewal notice. The church board gathered to review it, expecting the usual rate increase. Instead, they found something shocking. The insurance provider had doubled their hail deductible and their roof was no longer covered for full replacement for hail damage claims. If a bad storm hit, they would be left with a costly repair bill.
With the spring storm season approaching, the church leaders realized they needed to figure out their insurance policy situation fast. They had trusted their coverage for years, but now they weren’t sure if it would actually protect them from the potential damage that spring hail storms bring.
Here are three things Texas churches need to check before spring hail season arrives.
Kevin's church outside Austin had never thought much about their hail deductible as they had traditionally been relatively inexpensive. They knew they had to pay a portion of the cost if their roof was damaged, but even the recent increase to 2% seemed reasonable given the frequency of roof claims made in Texas.
When the church leadership looked at their renewal notice, they saw their deductible had jumped from 2% to 5% of the property coverage. That meant they would have to pay tens of thousands of dollars before insurance coverage for damage from hail.
Many Texas churches don’t realize that wind and hail deductibles are often different from the other deductibles on their church insurance policy. A percentage deductible means the church has to pay a percent of the total building value rather than the size of the hail damage claim. A 5% deductible on a $1 million church means the church must pay $50,000 before insurance kicks in. For some churches, that means self insuring for roof damage.
Another surprise came when they saw that their roof was no longer covered for full replacement cost. The insurance company had switched them to actual cash value (ACV) coverage for hail damage claims, which only pays for the depreciated value of the roof. Since their roof was over 15 years old, this meant the insurance company would only cover a fraction of the cost to replace it.
This is happening to more and more Texas churches, especially as insurers try to limit their payouts for storm damage. If a church hasn't reviewed its policy in a while, it may be facing the same problem.
Spring storms sweep through Texas often, bringing high winds and golf ball-sized hail. If it happens after the sun has set, you never know what type of damage you will find the next morning.
This happened with to a church not far from Kevin's. The next morning, at first glance There were no major leaks. They assumed everything was normal. So, they moved on without thinking much about it.
Many months later, a small water damage stain appeared on the ceiling of the sanctuary. A roofing contractor came to check it out and found that hail had cracked several shingles during that severe weather outbreak. They didn't see it, and were now doing temporary repairs to allow them to determine the extent of the damage.
Over time, rain had worked its way inside, causing hidden damage. When the church tried to file an insurance claim for the damage. Their insurance company denied it. The reason? The damage hadn’t been reported soon enough after the storm.
This is a common problem for churches. The complexities of hail damage mean that you don't always see immediate leaks. It is important to have a trusted professional inspect the roof for signs of hail damage after a storm. If damage isn’t reported quickly enough, insurance companies can refuse to cover the claim because of exclusions listed in your church insurance policy.
After realizing how high their new deductible was, Kevin and other church looked for other options. They discovered something called a deductible buy-down policy while talking to an insurance agent at Insurance for Texans. This is a separate policy that helps cover part of the church’s deductible, lowering the out-of-pocket cost if a hail storm causes damage.
For churches with high minimum deductibles, a buy-down policy can make a big difference for hail damage claim payouts. Instead of scrambling to come up with thousands of dollars after a storm, the church can use the buy-down coverage to handle a major part of the financial burden.
Our folks outside of Austin decided this was the best solution for them. It allowed them to secure a great church insurance policy and have extra protection against huge storm-related costs.
The board at Kevin's church in Austin was glad that they looked at their coverage for wind and hail. They had trusted their insurance to be there when they needed it, but policy changes left them vulnerable. Thankfully, they caught the problem in time to make adjustments before severe hailstorms arrived this Spring.
Texas churches should review their policies before the storm damage rolls in. The last thing any church needs is to find out after a disaster that they don’t have the comprehensive coverage they thought they did.
True Texas Church Insurance, offered by Insurance For Texans, helps churches find customized coverage for Texas weather risks. They start by asking you questions about your congregation and ministries so that they can understand your unique needs for hail insurance or other needs.
As a local agency that understands the challenges Texas churches face, they will help find policies that actually work when needed. Working with a specialist in Texas church insurance is important in making sure that your church is covered well. Just like Kevin's.
Click the button below to connect with a church insurance specialist today and make sure your church is ready for storm season.