Why Your Commercial Insurance Policy May Not Cover Hail and Wind Damage to Your Church
A comprehensive church insurance policy can save your ministry from the burden of repair costs while streamlining repair work to ensure timely completion. However, many people are unsure about their current insurance plan coverage; they think the commercial policy will cover all sorts of damage, but that’s not the case. Here are a few things you should know about your commercial insurance policy to understand whether you’ll be on the hook for a large portion of the damage after a storm with your current policy.
Exclusions
Many church property insurance companies often limit their coverage for churches in areas where hail and wind are common yet costly occurrences. Often, wind and hail damage or damages caused by “wind-driven rain” are specifically excluded from the standard church insurance policies, along with protection from damage that occurred due to natural flooding.
High Deductibles
Even when a policy does include wind and hail damage coverage, the contracts have different additional wind and hail deductibles that can sometimes cost thousands of extra dollars, with some deductibles costing even more than paying for the damages from your own pockets. This is because wind and hail deductibles can range from 1% to 5% of the building coverage amount. If your church building is insured for $3,500,000 and you have a 3% deductible, your deductible would equal $105,000. Your church would need to pay this amount before the church insurance company paid a single penny to cover the loss.
You may have the option to purchase a separate insurance policy that covers a portion of the deductible. These policies are called deductible buy-back insurance policies. However, these policies can add thousands of dollars to your overall church insurance premiums.
Direct Damage
Regardless of how hard you try to limit the damage caused to your church after a hailstorm, there will still be several aftereffects that can ‘snowball’ into a multitude of costly damages, such as water damage caused by fire hoses or fire caused by lightning. Most policies limit their coverage to ‘direct damages,’ which means they cover only damages caused due to direct peril. Damaged roof tiles or broken windows might be covered in a hail policy, but it may not cover water damage caused by rain seeping through the roof or thieves looting the church due to broken windows.
Matching Materials
Unlike other commercial buildings, most churches are constructed with old and valuable materials inside out. From limestone bricks to marble flooring and carved railings, it can be incredibly expensive to restore all the precious elements. Many policies often refuse to pay extra costs to ‘match’ the damaged materials in the existing structure, which can lead to the creation of aesthetic differences that can significantly devalue the church’s structure.
It is important that your church insurance agent puts together a properly constructed replacement cost estimator that factors in the material cost used for your church. While this will increase the cost of your insurance premiums, the benefit of the additional coverage far outweighs the cost of not having enough money to rebuild your church with like materials due to your coinsurance clause.
The type of policy you choose will dictate how much of the losses will be covered. Schedule a consultation with our church insurance agent to determine which extensions and additions or policies might be most suitable for your church.
A comprehensive church insurance policy that includes church property insurance, church liability insurance, workers’ compensation insurance, house of worship insurance, ministry insurance, commercial auto insurance, and more is the best way to safeguard the ministries.
As one of the leading church insurance companies, Integrity Now Insurance Brokers can connect you to reliable church insurance agents to ensure your church remains protected with all the coverage it needs.
Whether your ministry has multiple property locations with several employees or it includes just a small church, church insurance is crucial for ensuring protection at the place of worship.
Call us today to discuss your coverage plan to ensure nothing can impede your church’s growth and progress. We offer services in several states, including Arizona, California, Colorado, Nevada, Ohio, Texas, and Washington.
