Janice is the treasurer for her smaller church in Belton. As the finance committee was meeting recently, they were looking at how their expenses for the year were compared to their budgeted amounts when they were hit with a bad piece of news. They knew that their church insurance policy was due for renewal and they fully expected their property insurance costs to go up. But seeing a letter saying that the church's insurance policy would not be renewed was definitely not what they were expecting. After reaching out to some other churches, they quickly realized that this was all too common for Texas churches this year.
This news came as a blow, especially considering the church was in the middle of hail season in Central Texas.The problem now was not just finding a new insurer but making sure that their church building would have the roof covered for hail storm. As Janice took the reins of the process to obtain new coverage, she wanted to understand why they were dropped and how to navigate the murky waters of church insurance to ensure continuous protection. The fear of standing financially unprotected against potential disasters has put Janice and her team on a quest for reliable coverage that doesn't cripple their annual budget.
Worried About Your Church's Insurance Company Dropping You?
The shock of receiving a notification about losing insurance coverage is becoming a reality for more churches in Texas. Janice was not alone. Many Texas churches are finding themselves suddenly vulnerable as insurers adjust their risk-taking decisions in response to climbing claims and excessive losses. In a wicked twist for church insurance providers, the number of companies completely leaving the state and removing coverage from churches has increased as the year has worn on. This has complicated matters while also highlighting the importance of finding a specialized church insurance agency that can guide your church through these uncertain times is more apparent than ever. Janice called Insurance For Texans to help her with this process and to try and make sense of what was occurring with her church.
Reasons For Insurance Companies Dropping Texas Churches
Insurance companies have been reassessing their involvement with churches, particularly in Texas, due to several factors. It shouldn't come as a shock to anyone that big weather events have come frequently in many places across the state. Significant property losses from those hail storms, hurricanes, and freezes have made the companies who provide insurance for churches to re-evaluate their underwriting standards. These stricter underwriting standards have led many church insurance providers to withdraw from the Texas market because of the changes in their risk profiles due to population growth where these storms occur most often.
Increased Risk Profile
The risk profile for all insurance companies in Texas has escalated due to rapid population growth in areas prone to severe weather. This growth has happened in the northern parts of Dallas-Ft Worth, greater Houston, the Hill Country outside of San Antonio. This expansion has not only increased the number of properties that insurers must cover but also heightened the potential for significant losses as construction costs have escalated. The huge losses that have happened in these areas have made it increasingly challenging to find reinsurance partners for the insurance companies providing coverage to Texas churches. These factors as well as the nonrenewal notices are contributing to rising insurance rates for those still offering policies to churches. The number of insurers that have exited the Texas market altogether are leaving churches scrambling for coverage that is drastically more expensive.
Changes in the Insurance Industry
While you may not realize it, the insurance industry as a whole is currently undergoing some drastic changes due to the shifting risk profiles that we've mentioned along with the financial markets affecting reinsurance companies' ability to provide coverage for these high risk areas. The reinsurance companies provide insurance to the church insurance companies so that they are not over exposed to excessive losses when these large events hit. Different states approach insurance regulation differently and poor choices by some states have made it difficult for church insurance providers to continue to provide coverage to churches. While Texas has done a great job of managing these issues, the insurance landscape is shifting. Many companies are choosing to exit the church insurance market due to the high risks and financial losses associated with these policies. This trend poses significant challenges for churches, forcing treasurers like Janice to seek alternative options and deal with potential gaps in coverage as a result.
Challenges Faced By Texas Churches Losing Insurance Coverage
The primary challenge for Texas churches losing insurance coverage is the financial risk of being uninsured. Fortunately, Janice's church was working ahead of their nonrenewal notice date. But many churches are caught off guard and place not only their property at risk, but also their financial well being operating without liability coverage. This is a worse case scenario as the claims process never happens if you lose coverage altogether. Churches must consider how to handle potential damages or liability claims without active coverage, which could threaten their financial stability and ongoing operations. No one likes to pay too much for insurance premiums, but operating without coverage for any time period is a bigger issue. This was an issue that the finance committee could easily wrap their heads around.
If your church is smaller and operating on an incredibly tight budget, it is important to work with an independent insurance agent to help you find minimum coverage to make sure that you aren't left paying for a lawsuit judgement or rebuilding your entire building. While this option might be less than ideal, customizing a plan to cover bare bones is infinitely better than no coverage at all.
Getting New Coverage For Your Texas Church
Finding new coverage can be daunting but working with an experienced church insurance specialist will allow you to avoid gaps in coverage and craft a plan to meet your needs. Working with an independent insurance agent will allow you to see across the available insurance marketplace so that you can evaluate your options. Securing TRUE Texas Church Insurance can allow you to tailor your insurance solutions to fit the unique needs of your Texas church. This process provided Janice and her committee the peace of mind through a comprehensive policy that met their needs.
Securing True Texas Church Insurance
Securing the right insurance involves collaborating with specialists who understand the specific needs of churches and can offer customized insurance solutions that provide adequate protection against a range of risks. The agents at Insurance For Texans have helped many churches across this great state adjust policies to meet the unique needs that each church had in securing coverage.
Janice's journey in securing new insurance for her church in Belton is one many church leaders may face. Click the button below to explore stable insurance solutions for your church with TRUE Texas Church Insurance, ensuring that your place of worship is protected against the unexpected and can continue its mission without fear of the unknown.