Obtaining new, affordable property insurance for churches in Texas feels like the impossible these days. More and more churches are feeling the pinch on their budgets when they can least afford it. It has had an effect on both large and small churches.
One large church in Amarillo that has always taken pride in being financially responsible reached out to our church insurance specialists to get help recently. Their property insurance had been with the same company for years, and they had never worried much about it as it had taken care of them when they made their only claim a few years back. That all changed when they got their latest renewal notice. The premium had increased so much that they just could not afford it in their budget this year.
The finance team knew they had to explore other options. There has been a lot of talk amongst pastors and leaders regarding the new risk program that one of the main denominations was putting together. They like the idea a lot, but have many questions so that they don't wind up in this position again.
One of the most pressing questions was how this risk pool would benefit them since all of the churches attempting to participate are in hail country just like they are in Amarillo. They felt like they needed to explore other options as well. They needed coverage that would protect their buildings without the fear of unpredictable cost increases. That’s when they called Insurance For Texans to investigate if True Texas Church Insurance had a solution.
Extreme weather events are not all that newsworthy in Texas anymore. Hailstorms, tornadoes, and hurricanes hit every part of the state, every year. The Panhandle has a front row seat for many of these storms as they roll off the mountains and across the plains. Unfortunately, they end up causing billions of dollars in damage to property. The church insurance companies end up raising rates to cover those losses, and churches keep seeing their budgets strained just like our friends in Amarillo.
As insurance companies have pulled out of Texas and non-renewal notices have been sent out, new solutions have been needed. One result of this need is the formation of Risk Purchasing Groups to cover catastrophic property losses due to convective storms and other weather events.
These purchasing groups pool property into combined master policies that allow the potential individual risk of a large weather event to be spread across multiple A Rated insurance carriers so that those companies can reduce their overall risk profile while providing great coverage to Texans who need it.
Working with a national Risk Purchasing Group spreads the financial risk across churches in multiple states, instead of keeping it all within Texas. This means one big storm season in Texas will not drive up rates as much because the cost is shared by churches in other regions of the country.
This information is exactly what the church in Amarillo was looking for as they researched options. If a major hurricane or hailstorm season hit, they feared that their rates would increase even more. A national option gave them more confidence that their pricing would not be tied only to Texas weather patterns.
When churches join a Texas-only risk pool like the one being designed for the Baptist churches, they are directly tied to the claims of other churches in the state. If multiple big storms hit across North Texas, insurance providers are prone to take massive losses. This is known as a concentration of risk and will force these risk purchasing groups to remain somewhat small and very diversified around the state. The other alternative is they will be forced to raise premiums for everyone the next year. This cycle makes it hard for churches to plan their budgets as our friends in Amarillo were seeing in the current environment.
A national Risk Purchasing Group balances risk across different regions, so pricing does not jump as much after a tough year in one state. This can make insurance costs more stable, allowing churches to plan ahead.
The Amarillo church wanted to be able to budget with some sense of normal changes rather than massive price jumps. They had seen too many churches struggle when their insurance costs suddenly skyrocketed. A national risk purchasing group felt like a safer option that would help them avoid those surprises.
Not all insurance companies have the same financial strength. The onslaught of big storms over the last few years has greatly weakened several insurers and forced some to leave the state. This has led to fewer choices in the marketplace and caused a lot of upheaval for Texas churches.
A national Risk Purchasing Group brings an added benefit to the equation. Since the concentration of risk is lowered due to the risk being spread across the country, more of the risk adverse A-Rated insurance carriers are willing to enter the market.
Many of these big brand companies have been burned on property insurance claims in Texas. But they are willing to put some money to work when they have a cap on their losses and can share the total cost of risk with others. This strength brings fantastic insurance companies to the program.
The Amarillo church saw that the Texas-based option they were considering had fewer choices for insurance carriers. The national risk purchasing group on the other hand, had agreements with multiple well-rated insurance companies. This gave them confidence that they were getting reliable protection.
Finding the best insurance is about more than just price. Churches need to compare coverage terms, financial stability, and long-term costs before making a decision. Your church is buying a promise of certainty and not just a piece of paper.
An experienced, independent church insurance agent can help by explaining different options and finding the best fit. They can compare Texas-only programs with national options to see which one makes the most sense for your circumstances. No single program is a one size fits all solution to this problem.
The Amarillo church worked with a church insurance specialist who helped them review their choices. In the end, they decided that a national Risk Purchasing Group gave them the best combination of price, stability, and protection. They were able to find this through our True Texas Church Insurance program that matches churches to insurance coverage that meets their unique needs and ministries.
If you want to experience this process, click the button below to connect with a church insurance specialist.