Day after day, churches and religious organizations around the state of Texas are receiving a non-renewal notice for their church insurance policy. The woes of the hail events causing property claims statewide are finally catching up with multiple church insurance companies. As church leaders like Theodore in Belton are finding out, the difficulty in the property insurance marketplace is not only making it hard to find competitive rates, it's also making it difficult to find policy terms anywhere. Theodore felt like he was grasping at straws making phone calls to various insurance agencies. The more calls he made, the more he wondered who is actually insuring Texas churches today. The dirty secret that no one in the insurance industry wants to admit is that Theodore isn't alone and it has become a massive problem for Texas Churches, Houses of Worship, and their related Nonprofit Organizations. What can be done?
Importance of Comprehensive Insurance for Texas Churches
Most church boards or elders completely understand the need to have proper coverage. That definitely isn't news to them. But defining proper coverage is a bit more difficult as there is not an industry standard to clearly define it. Texas churches face unique risks that can result in significant financial and reputational damage if not properly covered. We typically break down insurance coverage for churches into two realms, property coverage and liability coverage. Each plays an important role in making sure that a bad moment in time does not make sure that the future of the church is over now.
Church Property Insurance
A church property insurance policy is important for protecting a church’s physical assets, including buildings and valuable possessions needed to run it day to day. In Texas, obtaining commercial property coverage can be challenging due to the frequency of wind and hail claims. The goal of this coverage is to make sure that churches can rebuild or repair their property after a disaster, preventing prolonged disruptions to their ministries and services.
Liability Coverage
A church liability insurance policy covers various third party risks that can put the financial future of the church at risk due to lawsuits or other claims made. This church insurance coverage can include general liability, professional liability, directors and officers liability, or sexual misconduct liability. This protection is vital to cover churches for legal actions that could arise from their activities and interactions that lead to allegations of abuse or other misdeeds. Churches need liability coverage to manage the defense of potential lawsuits and claims effectively. The good news is that liability policies are much easier and cheaper to obtain than property protection.
Church Insurance Providers in Texas
Unfortunately, the number of insurance companies offering comprehensive policies to churches in Texas is shrinking. Over the course of the twelve months, the story of companies exiting Texas have been documented in multiple places. With that in mind, there are two main types of ways that churches can obtain insurance in Texas. The direct writers represent captive agents who can only present one option to churches that are in need of a church insurance policy. Alternatively, independent agents work with multiple carriers to find the best option with respect to policy terms and insurance costs. Each solution has pros and cons when thinking about securing coverage.
Direct Carriers in Texas
Direct carriers like Brotherhood Mutual have dedicated agents who sell their products exclusively. While these companies offer specialized church insurance, their agents’ ability to provide multiple options is limited, which can restrict the church's choices. It's also important to note that many of these companies will not offer terms to your church if your claims history is not squeaky clean. Larger church properties can also find difficulty getting an offer for coverage from these companies when they reach their maximum capacity for new business at any given time.
Independent Insurance Agents for Churches in Texas
Independent insurance agents offer a broader range of coverage options because they work with multiple insurance companies who can be paired together to find the coverage needed to meet your unique needs. They can also work with the budget constraints of churches and work to find cost-effective solutions using different options and carriers rather than being forced to use a cookie cutter, one size fits all approach. While you can get a better option from a direct carrier, when things aren't "perfect" having options can work well in your favor when securing insurance for churches in hail country.
Why Are There So Many Non-Renewals In Texas Right Now?
When Theodore called us, he really wanted to understand why he got a non-renewal. We couldn't say anything specifically other than Church Mutual decided that the church insurance claims from weather losses were just too much for them financially. And it is really a part of a bigger trend in Texas for not only church buildings, but all property insurance.
The increased number of non-renewals among Texas churches can be attributed to a handful of problems in the property insurance market. Inflation has made the cost of replacement or repair skyrocket in the claims process. The number of claims from hail storms has skyrocketed as more people have moved to Texas. This has caused many insurance companies to leave the state or exit the church insurance marketplace due to substantial losses. And for those that aren't faced with a non-renewal, the rate increases have become intense. Theodore now understood even if he didn't like it.
Working with Insurance For Texans to Get Coverage
Whether you are looking for coverage due to a non-renewal or because your church insurance rate increase made you choke, the independent agents at Insurance For Texans are here to help. We are dedicated to helping Texas churches protect themselves and their future with customized insurance plans using our True Texas Church Insurance. We begin with a set of questions as well as gathering data about your church, its ministries, and the unique needs that it possesses. Working with our experienced church insurance specialists ensures that all needs are met.
True Texas Church Insurance is committed to safeguarding the future of your Texas church. Theodore found that we offered the expertise and personalized service required to navigate the complex insurance landscape. But more importantly, he found peace of mind through understanding the process and why he needed the additional coverage options that we recommended. Our local Independent agents speak Texan just like you, and have the ability to customize insurance plans based on your church’s unique needs and ministries. TRUE Texas Church Insurance provides tailored solutions to protect each church’s specific risks and requirements.
Click the button below to explore the best insurance options available for Texas churches today with TRUE Texas Church Insurance.