Serious damage to your church property can stop operations in their tracks. It can leave your congregation displaced for the foreseeable future, causing a hindrance in your mission of spreading the word of God, especially when your church insurance company balks at your property claim and looks for ways to avoid reimbursing you for the damages adequately.
We hope no religious organization suffers from the perils of property damage. However, the bitter reality is that accidents and malicious activities occur, mostly because of factors that are sometimes beyond anyone’s control. So, if a situation is to occur, it’s better to remain prepared and safe than sorry. Our church insurance specialists have prepared a brief guide to help you understand the things you should know before filing property damage claims.
Filing a Property Claim: What You Need to Know
When a ministry experiences property damage, a church leader’s first thought could be to file a claim on their property insurance. While this is often necessary to get the property replaced or the damage repaired, it’s not always in your best interest to file a claim, regardless of the property coverage you had in place.
Whether the property coverage is for a business owner, homeowner, nonprofit, or religious organization, here are a few things to consider before filing the property claim.
The Deductible on the Policy
It may be a good idea to get an estimate on the costs of getting the damaged repair if you’ve got a high deductible. If the repair cost is less than the deductible or maybe slightly over, then it’s probably in your best interest not to file an insurance claim. This is because when the deductible isn’t met, the payout would be close to nothing.
In addition, when a church files a property insurance claim or liability insurance claim, they lose their claims free discount for 3 to 5 years. This discount can equal hundreds if not thousands of dollars in increased insurance premiums.
The only time insurance claims payout is when the property damage exceeds the policy’s deductibles. When the property damage is slightly more than the deductible, most insurance carriers consider it a ‘nuisance claim.’ This means the best choice in this scenario to replace or repair the damaged property would be to pay out-of-pocket.
That’s why experienced church insurance agents at Integrity Now Insurance Brokers recommend understanding what deductibles mean and how they impact future claims before signing up for a church insurance policy.
Filing through several property damage claims within a short period increases the chance of the company considering you a ‘high-risk’ account. This could result in increased premiums or the church insurance company refusing to continue as your insurance provider.
Although countless factors impact what a policyholder’s premium would be, the claims’ filing history is an essential determining factor—especially the smaller or repeatedly filed ‘nuisance claims.‘
Let Us Help!
When a loss occurs, regardless of whether it is minor or major, church leaders often feel overwhelmed when picking up the pieces to continue serving those who look up to the church for support. Partnering with licensed church insurance agents can make all the difference.
Consider scheduling a consultation with us to learn how comprehensive church insurance plans and relevant policy additions or extensions can help safeguard your ministry from a wide range of potential damages.
We can help you find all the information you need to devise a comprehensive nonprofit insurance or church insurance policy. One that comprehensively includes workers’ compensation insurance, church property insurance, EPLI, pastors’ and ministers’ liability, abuse and molestation coverage, commercial auto insurance, umbrella insurance, directors and officers insurance, church liability insurance, and more. The type of policy you choose will dictate how much of the losses will be covered.
What matters the most is working with a reliable ministries insurance carrier with a proven track record. We can connect you with top church insurance companies in your area to get you the best-tailored packages at the most suitable rates to ensure your ministry remains adequately covered.
You can call us at 877-854-7396 or email us to discuss your concerns. We offer services in several states, including Washington, Arizona, Colorado, Nevada, Texas, Ohio, California, and many other states across the United States.