A church secretary named Mary emailed our office this morning. She indicated to us that her church had been without insurance since January when their expiring policy with Church Mutual had expired after being non-renewed. She then began to explain what their insurance journey had looked like over the last six months. It was honestly crazy.
Mary had originally contacted an independent insurance agent who did not specialize in commercial insurance, much less Texas church insurance. This person was not upfront about this bit of news and eventually left them without a proposal for coverage and no time to secure coverage. Realizing that they had to find property coverage somewhere, they went to a major name in the commercial insurance industry that strung them along and gave them a quote. Not much back and forth or customization. A take it or leave it approach. Mary indicated that they walked away from both the price and the service.
They then went to a major name company that does not do a lot of church insurance and were told that they could not offer any church insurance options to them. They didn't like the answer and asked two other agents of the same big name. It took three times being told no before they believed them. By this time, the market had been saturated and as they attempted to contact other independent agencies, there were no quotes to be found anywhere.
This process too several months and resulted in the bank who holds their mortgage to put force placed insurance for their commercial property insurance. That giant quote from early in the process didn't seem so bad now.
Mary never imagined her role at the church would involve navigating the maze of insurance packages like this. But here she was, with a non-renewed policy and six different agencies that won’t even return her calls. How did it come to this, and what mistakes were made along the way?
Why Insurance Is Important For Texas Churches
Church insurance policies are an important part of protecting Texas congregations from potential lawsuits, covering expenses related to legal claims, and providing financial stability in the wake of major storm events. Without a comprehensive insurance policy, churches risk financial ruin and operational disruptions. It's not just about meeting legal requirements—insurance is a vital safety net that ensures a church can continue its mission and ministries even in the face of adversity. But just because proper coverage is important, doesn't mean that it is easy to understand or that your church leaders are securing what you need. Many mistakes can be made in trying to find church insurance companies to cover your church Especially now! Mary was feeling this crunch.
Lack of Understanding of Insurance Needs
Many churches, especially those managed by volunteers, often feel overwhelmed by the complexities of insurance coverage. Understanding the potential risks and liabilities specific to religious organizations in Texas is difficult. Volunteers might feel like they're in over their heads, leading to confusion and missteps in securing appropriate coverage. It’s essential to grasp the unique insurance needs of a church to avoid pitfalls whether it is property coverage, liability coverage, or things like deductibles. Many options are available from insurance carriers even thought the Texas marketplace has become a problem. Mary was looking for proper education and guidance from an experienced insurance specialist who could make a significant difference in navigating these complexities.
Non-Renewals & Cancellations Are Creating Havoc For Texas Churches
When Mary got on the phone with us, she was definitely frustrated. She had been non-renewed prior to when the policy ran out in January. Our experienced insurance agent then explained that non-renewals and cancellations have become a significant challenge for Texas churches. They are disrupting insurance coverage for religious organizations and churches while making it difficult to find adequate replacement policies. The tightening property insurance market and the exodus of insurance companies from the state are making this problem worse as churches seek out comprehensive insurance coverage.
This was definitely true with Mary. Churches need to navigate these challenges carefully to maintain continuous coverage. The uncertainty and stress caused by these disruptions can impact the overall functioning and morale of the church community. The folks responsible for the church's finances were becoming more worried every day which was a distraction from completing their mission.
Lack Of Companies Offering Coverage For Churches In Texas
It is important to highlight the dwindling number of insurance companies willing to cover churches in Texas. Property coverage in particular poses a significant hurdle for churches like Mary's. Non-renewals, cancellations, and changing policy terms leave many churches, especially smaller ones, struggling to find essential coverage, much less any additional coverages that they might want. Some churches have had to consider going uninsured due to these challenges. This scarcity of options forces churches to spend valuable time and resources searching for viable coverage, often with limited success. It underscores the importance of finding a knowledgeable, experienced insurance agent who can navigate this difficult market.
Common Mistakes Being Made By Texas Churches Looking For Coverage
Texas churches often make several common mistakes when seeking new insurance coverage in "normal" circumstances, much less the current ones. Working with an experienced church insurance specialist who has access to multiple companies can help avoid these pitfalls. Rising insurance costs, non-renewals, and changing policy terms are all factors contributing to these mistakes. Some churches may not fully understand their insurance needs and inexperienced agents do not understand how to present the church's unique risks to the insurers to best leverage what types of coverage are available. This has a tendency to lead to either inadequate coverage or higher premiums. Or even worse, both. Addressing these issues proactively can make a significant difference in securing the right insurance. Mary felt like she had been victim to this in her search over the last few months.
How An Inexperienced Insurance Agent Destroys Your Ability To Get Coverage
An inexperienced insurance agent can severely impact your ability to secure adequate insurance coverage. Their lack of knowledge and expertise can lead to mistakes and potential claim denials in a worst case scenario. We've seen this all too often.
Especially now, if an agent does not understand current market and what the underwriters are looking for, it can waste time and lead to multiple declinations of coverage. As this activity piles up, not having the specific needs and risks associated with insuring a church is overlooked. This results in inadequate or overpriced policies which many churches often decline to take simply due to confusion. Mary believed that this is what had landed her in her current predicament and without church insurance coverage that left her church exposed to potential legal liabilities.
Choosing a single agent with a proven track record in church insurance can prevent these issues and help your church obtain the comprehensive insurance coverage that they need. Mary was ready to explain this to her church leaders after multiple agents had told her that they couldn't even offer terms because there were so many quotes that had been dropped on the street.
Misunderstanding Risk & Inadequate Coverage Selections
Misjudgments or biases in perceiving risks can lead to inadequate coverage selections. Cognitive biases, such as the optimism bias, can result in an incorrect understanding of risks. We all think that things could never happen to us, even though we plainly see what is going on in the world around us. This is why coverage for churches is so important.
Churches must have appropriate liability coverage that matches their ministries and activities to address their unique risks adequately. Without a clear understanding of these risks, churches may select policies that leave them vulnerable to financial and operational setbacks. This is why the church insurance agents at Insurance For Texans ask so many questions in the intake process. It's important that coverage aligns with your church's actual needs and potential exposures is critical for long-term protection.
Using Multiple Places or Agencies For Policies
Finally, having multiple insurance agencies searching for coverage for your church is counterproductive. Each church insurance carrier only allows one proposal for coverage per church, so involving multiple agents won’t improve your chances. In fact, if one of your choices doesn't understand Texas church insurance and presents a bad submission to the underwriter first, you could miss out on a golden opportunity for comprehensive insurance coverage options with the right carrier.
Working with an experienced church insurance agent who specializes in and understands the Texas market can streamline the process and find the best coverage. This approach prevents the confusion and delays associated with multiple agents submitting competing applications. A single, knowledgeable agent can provide a more coordinated and effective strategy for securing the necessary coverage.
Negotiated Risk Placement For Churches
Negotiated placement of risk involves understanding various insurance coverage options and pairing your church with the best insurers for your risk. Different insurance companies have different risk appetites, and an experienced church insurance agent can leverage this knowledge to create the best scenario for your church. This method ensures that your church receives competitive bids from insurers who are best suited to cover your specific risks and needs as dictated by the ministries and activities that you serve your community with. By aligning your church with the right insurance providers, you can achieve more comprehensive and cost-effective coverage. When Mary heard about this process, she was relieved and now felt like there was a path to finding the right types of coverage for her Central Texas Church.
What Is True Texas Church Insurance
True Texas Church Insurance offers comprehensive coverage tailored to the unique needs of Texas churches. It includes a range of protections designed to safeguard churches from various risks, ensuring their financial stability and operational continuity. This specialized insurance process addresses the specific challenges faced by religious organizations in Texas, providing peace of mind and security. Partnering with an insurance provider who understands your unique needs can make all the difference in maintaining your church's mission and operations. This is Negotiated Risk Placement at it's premium level for Texas churches looking for the right types of coverage at the best possible pricing.
Working With Insurance For Texans To Get Coverage
Insurance For Texans specializes in helping Texas churches secure customized insurance plans. Their experienced church insurance specialists understand the marketplace and the specific needs of Texas churches. True Texas Church Insurance is only available through Insurance For Texans, ensuring you get the best coverage tailored to your church’s unique requirements. Working with these specialists ensures that your policy coverage matches your church’s ministries, activities, and unique needs, providing comprehensive protection and peace of mind. Their expertise and dedication make the process smoother and more effective, allowing your church to focus on its mission. Mary is now on the path to protecting her church from claims that may arise in the future.
Click the button below to find out how True Texas Church Insurance can guide you through securing the right coverage for your church.