Church Construction Project Insurance

Church Construction Project Insurance

When a church is planning a major renovations, it will be important to purchase a church construction project insurance policy. 

As your church insurance brokers, we want nothing more than for our church clients to continue to grow.

We have help find the right church insurance program for these churches who only had ten or so church members

To see these same churches grow to over a thousand church members is incredible.  As they grew, so did their church insurance coverage.

Unlike your general liability insurance policy, a construction insurance policy for churches covers the project during the course of construction.  

No matter the size of the project, when you are adding additional square footage to your church, or building a brand new church auditorium you will need to obtain a special insurance policy.

Church Construction Project Insurance

What is A Church Construction Project Insurance Policy

A church construction project insurance policy is more commonly referred to as a course of construction insurance or a builders risk policy.  As the two names state, this policy provides insurance coverage throughout the entire building process.

Often the general contractor while include this policy as part of their bid for the project.  However, many times this responsibility will fall onto the church. 

Builder’s risk insurance helps protect church construction projects from property damage due to:
  • Fire
  • Lightning
  • Hail
  • Explosions
  • Theft
  • Vandalism
  • Acts of God, like hurricanes

How Much Do Church Construction Project Insurance Policies Cost?

A church construction project insurance policy can cost a few thousands dollars to tens of thousands of dollars.

The total cost is based on multiple factors to include:

  • Total cost of construction (soft cost and hard cost)
  • Experience of general contractor building a similar project
  • Past insurance claims history of the general contractor
  • Length of the construction project
  • Security around the project
  • Max value of construction materials stored at the jobsite or offsite storage area.
  • Deductible chosen
  • Optional coverages added to the policy
new church building construction plans

What Doesn't A Church Construction Project Insurance Policy Cover?

A builders risk insurance policy typically excludes:

  • Contractors tools left on the jobsite
  • Flawed Workmanship
  • Vehicles
  • Earthquakes
  • Floods/Water Damage
  • Acts of War or Government Action
  • Intentional Acts
  • Employee Theft
  • Contractual Penalties
  • Mechanical Breakdown

It is important to fully understand and read your entire policy.  There is no standard policy form related to a builders risk policy.  Depending on your overall churches budget related to insurance cost, it may be tempting to remove coverages from your church construction project insurance policy to save a few bucks.  

Most builders risk policies include coverage for ‘Acts of God’ such as extreme weather.  However, your insurance policy may stipulate certain requirements in order for coverage to be available.  One example could be, provide reasonable protection of your off site stored building materials from the elements.  

Collect Certificate Of Insurance From All Contractors

As a church, it is important for your General Contractor to list your organization as an Additional Insured on their liability policy. 

In addition you will want their workers’ compensation insurance to provide a waiver of subrogation in your favor.

It is critical that you require each subcontractor also have the same insurance requirements and provide you with proof of their insurance.

Any subcontractor who fails to meet all of your insurance requirements, must be denied access to your churches construction project.

Most church construction project insurance companies, will require for you to make this a requirement as part of purchasing their insurance coverage.

If a churches fails to enforce these requirements, they can be held liable for all injuries. 

In addition, the church insurance company will charge a hefty premium as a result of the payroll related to the uninsured contractors.

certificate of insurance

When Do Churches Add The New Building To Their Existing Insurance Program?

When the churches construction project is completed, it is important to contact your church insurance agent and request for them to add the additional square footage or new building to your policy.

Countless churches, forget to notify their Agent once the project is completed.

Your construction project is considered completed, once your city inspector providers their final signature.  With this signature, the city is agreeing that the project was built to code and current standards.

While many people love to hate the city inspector, they are their to protect the building owners from faulty work product.

church insurance agents helping your construction project

Looking For Church Construction Project Insurance

Integrity Now Insurance Brokers is here to help you with your next construction project. 

It is important to not skimp on your builders risk insurance policy.  Purchasing all of the critical coverages that are available, help provide the needed protection your church will need in the event of a total loss.

We have seen project get to 99% completed and a fire starts and all is lost.  Thankfully for churches who have the correct insurance in place, they were able to rebuild without suffering a major financial loss.

Our church insurance providers are A rated by AM Best and are in good financial standing.  Reach out to one of our church insurance specialist and see how we can help you save on your church insurance.

We can also help you with your general liability, workers’ compensation insurance, directors and officers insurance, employment practice liability insurance, abuse coverage, group health insurance, and more.

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