Rising Inflation Is Causing A Church Building Insurance Gap
Rising Inflation is creating a church insurance coverage gap, that could have a negative affect on your church building insurance coverage.
Most church property insurance coverage, includes an inflation guard of 1 to 3 percent. Church insurance companies attempt to keep up building insurance coverage through the inflation guard.
However, as inflation has been growing at a rate of nearly 9% or higher, churches who are already strapped for cash due to Covid-19 may face an additional burdens.
Now more than ever, it will be critical to talk with your church insurance agent and verify if your building insurance is keeping up with the rising inflation.
Construction Material Rising Due to Rising Inflation
Inflation is now at a 40 year high, and based on the most current numbers has reached 8.5% in the last quarter. Families have felt the impact of inflation rising each time they fill up at the pump, buy groceries, and purchase basic necessities.
Rising inflation is also going to affect the following for most consumers:
- Insurance Premium Rising
- New & Used Cars Cost Skyrocketing
- Transportation Cost
- Uber & Lift
- New Home Construction
This list could go on forever, identifying all of the cost we are seeing going up. Rising inflation clearly has a major impact on just about everything.
Home builders are starting to pull back on building new homes due to the rising cost, and increasing interest rates. Churches and consumers need to conduct a complete insurance review on their policies, to see if their property insurance is keeping up with inflation.
As church insurance brokers, we are seeing property coverage falling behind by hundreds of thousands of dollars. This is creating the potential of a large co-insurance penalty situation.
The co-insurance clause requiring property owners to maintain a certain level of church building insurance or they could be penalized with a reduction in building coverage.
Request An Updated Replacement Cost Estimator
It is the responsibility of the church board members, to review their insurance coverage each year. Now more than ever, it is vital for churches to review their church building insurance coverage, to make sure their properties can be rebuilt in the case of a fire.
Insurance companies are doing their best to keep up with the rise in inflation, however, they may need some additional input from clients requesting additional increased coverage.
As a church you have the option to reach out to your church insurance brokers, and request for them to recalculate a new replacement cost estimator. In doing this you can quickly determine if your church building insurance are still insured to the correct values.
Replacement cost estimators are produced by third party companies who specialize in calculating reconstruction cost. They look at the type of buildings, local area cost, age of the church property, and more.
The great news is your church insurance agent is able to quickly input the current information and obtain the new figures in a very short amount of time.
Will Your Church Building Insurance Coverage Run Out Of Money With Rising Inflation?
If the rising inflation keeps going up and out of control, it could be possible for your church property insurance coverage to not have enough money to rebuild your fellowship hall or your main church building.
Another way to protect your church that has multiple church buildings covered under the same insurance policy, is to include a blanket policy limit.
While this is not a full proof additional coverage, it can help insulate you in times such as today.
A blanket policy limits, adds the total value of all properties and business personal property coverage into a single limit to pool your property coverages from. Your building insurance limit needs to be insured correctly, but in those times such as today where inflation has taken off this will help further protect your church insurance program.
We Are Your Rising Inflation Protection Church Insurance Agency
We understand that cost are moving higher at a rate not seen in many years. Integrity Now Insurance Brokers is here to help you contain your church insurance cost.
No matter if your liability or property cost are heading in the wrong direction, we can review your current church insurance program and identify any areas that could use some fixing.
One of our church insurance specialist are here to answer your insurance questions and review your church insurance policies. Many churches may only need help purchasing a workers’ compensation insurance policy, or maybe you want to save money on your church bus insurance.
Let us know how we can help!