Blogs

Church Building Insurance Coverage

Affordable Church Building Insurance Coverage For Nonprofit Religious Organizations

When reviewing insurance policies, one of the top things we discover is the church building insurance coverage being underinsured. 

 

While we also see specific church liability insurance coverages either not included or underinsured, the lack of adequate property insurance can be devastating.

 

No one ever wants to believe their church will be destroyed in a fire.  When you want to save money on your church insurance program, the last thing you want to discover is that your church doesn’t have enough insurance coverage. 

 

It is essential to conduct regular insurance reviews to ensure your coverage is keeping up with inflationary trends.  

How Is Church Building Insurance Coverage Calculated?

It is important to work with church insurance brokers who specialize in church insurance.  Many insurance agents do not have the tools that allows them to property calculate the replacement cost for a church. 

 

This is largely since most insurance companies do not have the specialized software that includes “Church Building Insurance Coverage” as a rating factor.  Most insurance companies will only allow the insurance agent to select a “low or high rise building” or other general building types.  Unfortunately, these buildings completely miss the mark.

 

Insurance companies specializing in churches provide specific software allowing your insurance agent to evaluate your church-building insurance coverage properly.  Following are a few of the different categories that are included within the software program.

 

  • Basic Church Building
  • Average Church Building
  • Elaborate Church Building
  • Traditional Church Building
  • Contemporary Church Building
  • Contemporary High Church Building
  • Contemporary, Mansard Church Building
  • Modern A-Frame Church Building
  • Auditorium Type Church Building
  • Narthex Church Building
  • Church with Sunday School Classrooms
  • Church Bell Tower
  • Church Camp Dorms
  • Church Camp Cabin
  • Fellowship Hall

Depending on the specific type of church building being reviewed, the software will produce a different insurance coverage amount.  Within each building type, your church insurance agent will also assess a quality score from 1-5 based on the building materials used. 

 

The replacement cost estimator report will gather all the needed information about the building to include the specific location.  The location of the church building will be a rating factor as it will calculate the local area labor cost as part of the evaluation. 

Church insurance agents

What Happens If My Church Building Insurance Coverage Is Under Insured?

There are several consequences churches can face if their property insurance is not calculated correctly.  The most obvious is your church will not have enough money to rebuild the same type and quality of a church building.  This can mean your member will need to raise money and pray they can pull in the resources to rebuild.

 

To make matters worse, if your church building insurance coverage is underinsured, there is language within your insurance policy that will further penalize your coverage.  This language is known as the coinsurance clause

In short, if your church building needed to be insured for one million dollars but it was only insured for five hundred thousand dollars, the insurance company will reduce the limits even further based on the coinsurance clause penalty. 

 

This can mean your church may only have access to two hundred thousand dollars in coverage because of being underinsured.

 

These may seem like large differences in insured amounts; however, it is very common that we find churches underinsured by 50% or more.  The good news is our church insurance companies offer competitive pricing on their property and liability coverages.

How Should the Church Insurance Quote Process Work?

When you are requesting an insurance quote that include church building insurance coverage, it is recommended to obtain your complete insurance policy from your agent.  Your new church insurance brokers should review your complete policy so they can identify any clear and obvious issues that stand out. 

 

Next, the insurance agent should review your church properties to determine the types of buildings to be insured.  Is your church building a 1930s traditional church building or a modern stadium church building? 

 

Thoroughly, discuss all properties owned by the church with the insurance agent, to ensure they are properly identifying and rating each building.  Once completed, request the insurance agent provide a copy of the replacement cost report to ensure you agree. 

 

Any disagreements with how you believe the church building was rated should be discussed and changed if warranted.   

 

It is also essential to not over-insured your church buildings.  There is a balance in calculating the total cost of reconstruction of your church building. 

Are Contents Include in Church Building Insurance Coverage?

Your churches business personal property is a separate coverage that falls outside of building insurance.  When you think about content coverage, consider all the stuff that can fall out of the church building if you were to shake it upside down. 

 

A good rule of thumb when calculating content coverage is to apply 18% of your building coverage toward your content’s coverage.  This will ensure you are not insuring your business’s personal property most of the time. 

 

There are occasions where the 18% guideline may not be sufficient and times when this amount would provide excessive insurance. 

 

For instance, a fellowship hall that only includes tables and chairs may not need 18% of the building value allocated toward the business’s personal property. 

 

Where your main church could have a highly sophisticated sound system, and 18% may not be enough to cover all your church’s business personal property. 

We Are Your Church Insurance Experts

Integrity Now Insurance Brokers is here to help you obtain church building insurance coverage.  We have helped thousands of churches across the US with their church insurance needs. 

 

We have access to the best church insurance providers known for caring for churches.  Your ministry insurance doesn’t need to be lacking in insurance coverage.

 

Not only can we help you with your churches building insurance, but We also offer church insurance coverage to including liability insurance for churchesworkers’ compensation insurancechurch van insuranceabuse and molestation insurancedirectors and officers insurancegroup health insurance, and more.  

 

We have partnered with the best church insurance companies so your organization can obtain the best coverage at the lowest price.

 

Request a Church Insurance Quote Today!

Recent Blogs

victory outreach church insurance coverage

Victory Outreach Church Insurance Coverage Guide

Welcome to the Victory Outreach Church Insurance Coverage Guide. As an independent insurance agency, Integrity Now Insurance Brokers understands the unique needs and challenges faced by faith-based organizations like yours. Securing the right insurance coverage is crucial to protect your ministry, property, employees, and volunteers. In this comprehensive guide, we will explore the various aspects

Read More »
financial software for churches

Top Financial Software for Churches – Quickbooks Online

Managing church finances is a crucial responsibility that requires careful attention to detail. By utilizing financial software specifically designed for churches, you can streamline your accounting processes and ensure accurate financial reporting. One of the top financial software options for churches is Quickbooks Online, which offers a range of features tailored to church accounting and

Read More »
mistakes to avoid when starting a nonprofit organization

Crucial Nonprofit Start-Up Mistakes to Avoid

Welcome to our article on the common mistakes to avoid when starting a nonprofit organization. Whether you are passionate about a specific cause or want to make a positive impact in your community, starting a nonprofit can be a fulfilling and rewarding endeavor. However, it is essential to navigate the challenges and pitfalls that often

Read More »
how do you start a nonprofit

Starting a Nonprofit: Essential Steps to Begin

Welcome to our comprehensive guide on starting a nonprofit organization. If you have a passion for making a positive difference in your community and want to create lasting change, starting a nonprofit could be the perfect avenue for you. In this article, we will walk you through the essential steps to help you navigate the

Read More »
how do you start a church

Starting a Church: A Step-by-Step Guide

Welcome to this comprehensive guide on starting a church from the ground up. Whether you’re an aspiring pastor or a group of individuals looking to create a spiritual community, we will provide you with the step-by-step process of church establishment. From defining your vision and mission to securing financial resources and engaging the community, we’ve

Read More »
nonprofit directors insurance

Nonprofit Directors Insurance: Protect Your Leaders

Welcome to our article on nonprofit directors insurance. As a nonprofit organization, it is essential to ensure the protection of your leaders and the sustainability of your mission. Nonprofit directors insurance provides the necessary coverage to safeguard your organization’s leadership from potential liabilities and unforeseen risks. At Integrity Now Insurance Brokers, we understand the unique

Read More »
questions to ask for reference checks

Best Questions To Ask For Reference Checks

Best Questions To Ask For Reference Checks When it comes to the hiring process, conducting reference checks is a critical step in ensuring that you make informed decisions about potential candidates. You can gather valuable information beyond their resume and interviews by contacting a candidate’s references. But what are the best questions to ask during

Read More »

Accessibility Toolbar

Scroll to Top