Why Is Church Insurance So Expensive: Insurance Cost, Church Property Insurance Coverage, Types of Liability Coverage, and more
As a church leader, you’re likely always looking for ways to save money and operate your church as efficiently as possible. But when it comes to insurance, you may wonder why it’s so expensive.
In this blog post, we’ll explore the cost of church insurance, the different types of coverage available, and how to get quotes. Understanding the church property insurance’s ins and outs ensures your congregation is covered without breaking the bank. Let’s dive in!
Table of Contents
Why are our Church Insurance Policy Premiums So High?
A church has a number of ministries that can operate in and around the church. The church needs several coverages, including general liability insurance, sexual misconduct coverage, business personal property coverage, and more.
Church insurance carriers need to consider the church buildings and property and liability insurance coverage on and off of the church property.
There are a few reasons why church insurance premiums can be high:
- Churches are seen as high-risk properties: Churches are often seen as high-risk properties because they’re open to the public and typically have a lot of foot traffic. This means there’s a higher chance of someone being injured on church property, leading to a lawsuit.
- Churches often have extensive commercial property insurance coverage: Churches typically have comprehensive property coverage because they often own valuable assets, such as buildings, fine art, and musical instruments. This type of coverage can be expensive, but it’s essential in case of fire, theft, or damage.
- Churches may need special liability coverage: Churches may need special liability coverage because they’re often sued for things like discrimination, sexual abuse, and wrongful death. This coverage can be costly, but it’s essential if your church is sued.
- Churches own 15-passenger Vans and Buses: 15-passenger vans and buses are owned by thousands of churches across the United States and present an increase in liability exposures.
- Insurance companies often charge churches higher rates: Insurance companies often charge churches higher rates because they’re seen as high-risk properties that include unique liability risks not associated with other organizations.
Christian churches require different types of insurance to protect them. A standard general liability policy does not provide churches with common church insurance coverages.
If you need church insurance, working with an experienced church insurance agency like Integrity Now Insurance Brokers is vital. They have access to specialized insurance programs for churches.
Are you Insured with a Church Insurance Company that Specializes in Insurance Coverage for Churches?
As a church, you face unique risks that require specialized insurance coverage. That’s why working with a church insurance company specializing in insuring churches is essential.
These companies have the industry knowledge and experience to provide you with the coverage you need at an affordable price.
If you buy insurance for your church with a company that does not specialize in churches, this will leave you without all the needed insurance protection for your church activities and members.
Working with a specialist church insurance provider is the best way to ensure you get the coverage you need. Working with church insurance brokers will ensure you receive the best quotes from several insurers.
Common Reasons for High Church Liability Insurance Costs:
How Many Insurance Claims has Your Church Filed in the Past 5 Years?
Churches that have filed insurance claims in the past five years typically experience high insurance premiums. This includes small and large insurance claims filed on behalf of the church.
The primary reason for the increase is the loss of a church’s claims-free discount.
Is Your Church Located in a High Fire Prone Area: Investigate Your Fire Protection Class
If your church is located in a highly fire-prone area, it is essential to investigate your fire protection class. As protection classes can increase or decrease from year to year, this can significantly impact your premiums.
Is Your Church In a High-Crime Area?
Local crime rates will impact your insurance premiums. Higher crime rates can increase your annual premiums due to the increased likelihood of stolen church property.
Copper wire from HVAC systems is a common theft item, along with sound equipment. We recommend installing an HVAC system cage to help protect these expensive devices.
Does Your State Susceptible to Wind and Hail Damage?
As we all know, churches can be susceptible to damage from severe weather. But did you know that some states are more vulnerable to wind and hail damage than others?
According to a recent study, the following states are most at risk for wind and hail damage:
- Flordia
- Texas
- Oklahoma
- Kansas
- Colorado
- Nebraska
- South Dakota
- North Dakota
- Minnesota
- Iowa
- Missouri
- Illinois
Is Your Church Property Located in a Flood Zone?
If your church property is located in a flood zone, you may be required to purchase flood insurance. Flood insurance protects your property from damage caused by flooding. Water damage is a common hazard and is covered under a church policy.
Electrical surge damage can damage computers and other electrical equipment. Recreational activity injuries can occur at a daycare center, camp, or other church-sponsored activity. Church property insurance can protect your property from these and other risks.
Do you have a Central Monitored Fire and Burglar Alarm?
A central monitored fire and burglar alarm is a security measure that can be used to lower your insurance premiums. This type of alarm system is monitored by a central station that can dispatch emergency services if necessary. This type of security can give insurers peace of mind, which may lead to lower rates for you.
Is your Building Maintenance Up to Date?
When was the Last Roof Replacement?
Your roof is one of the essential parts of your building, and it’s important to keep it in good condition to protect the church from water damage. Depending on your roof type, you may need to replace it every 20-30 years.
To maintain your replacement cost coverage provided by the insurance company, the best practice is to have your roof inspected annually for repair or replacement.
Have you updated your Plumbing?
Plumbing systems can sometimes disrepair due to their high costs, leading to severe problems.
That’s why keeping your plumbing system up-to-date and in good working order is so important. Regular maintenance will help prevent problems and ensure that any issues arise are dealt with quickly and efficiently.
Have you Updated your Electrical System?
Churches may receive reduced premium cost savings if their electrical systems are updated and inspected regularly. Updating your electrical system is a great way to reduce your church’s overall operating costs and prevent electrical fires.
Is your HVAC System New and being Cleaned Regularly?
If you have a new HVAC system, it’s essential to have it cleaned regularly. This will help keep it running efficiently and prevent any potential problems. Having your HVAC system cleaned by a professional is the best way to ensure that it’s done correctly and that all the parts are clean.
Is your Church Paint Fresh and New?
Churches are just like any other building regarding maintenance and upkeep. This includes regularly painting the exterior and interior of the church. Insurance companies conduct inspections to ensure you are keeping up with essential care.
Does your Parking Lot have Proper Lighting?
Your parking lot is one of the first places your customers or clients will see when visiting your house of worship. It is essential to make sure that it is well-lit so that they can see where they are going and feel safe walking to their car.
Proper lighting can also deter crime and help protect your church employees at night, so it is essential to have an adequate lighting system in place.
Are all of your Church Walking Areas Free of Cracks?
Churches are often considered sacred places. They are a place of worship and a place of community. To maintain the sanctity of the church, it is essential to keep the walking areas free of cracks and other hazards. Cracks can be dangerous and can cause trip and fall accidents. By keeping the walking areas in good repair, churches can help prevent accidents and injuries.
While your liability insurance covers a church from this type of liability exposure, it is critical to implement risk management tools to prevent accidents.
Are your Fire extinguishers up to date with their Annual Inspections?
Many churches can look over the small things leading to large insurance claims.
Small Churches and Large churches are required to inspect the fire safety equipment in their church. Not only can fire extinguishers help prevent fires, but they can also improve safety and security for your church members and employees.
What Types of Church Insurance Coverage do Religious Organizations Need?
There are several insurance policies churches need. Churches face all types of liability insurance exposures that need to be protected. Churches and other religious organizations should review their policies to ensure they have sufficient coverage.
With the rise in inflation, churches need to review their replacement cost values for their church buildings. Following are some of the essential coverages churches should have in place.
Church General Liability Insurance Coverage / Business Insurance:
Liability insurance will protect your church from lawsuits that allege bodily injury, property damage, and personal injury that occur on church property.
Church Property Insurance Coverage:
This type of coverage protects your church’s buildings, contents, and equipment from fire, theft, vandalism, and other types of damage.
Workers’ Compensation Insurance Coverage:
This type of coverage protects your church from lawsuits that allege an employee was injured while working on church property.
Commercial Auto Insurance Coverage:
This type of coverage protects your church from lawsuits alleging bodily injury or property damage while using a church-owned vehicle.
Pastoral Professional Liability Coverage / Professional Liability Insurance:
This type of coverage protects your church from lawsuits that allege emotional distress or financial loss resulting from pastoral counseling.
Abuse And Molestation Insurance:
This type of coverage protects your church from lawsuits alleging sexual abuse or molestation on church property.
Directors And Officers Insurance:
This type of coverage protects your church from lawsuits that allege wrongful decisions or actions by the church’s leaders.
Religious Expressions Insurance Coverage:
This coverage protects your church from lawsuits that allege religious discrimination based on long-held religious beliefs.
Employment Practice Liability Insurance:
This coverage protects your church from lawsuits alleging wrongful termination, sexual harassment, and other employment-related issues.
Umbrella Insurance:
An excess insurance policy provides additional liability coverage in case of a significant liability loss. Many religious organizations are involved in several different ministries, and some of these ministries can add increased exposure.
Missions Trip Insurance:
Youth groups often go on mission trips either locally or internationally. Buying mission trip insurance can provide additional protections related to health insurance or medivac coverage to bring someone sick home.
Would it Help to Increase our Church Property Insurance Deductible?
Your church property insurance deductible is the amount you would have to pay out-of-pocket in case of a claim. For example, if your deductible is $1,000 and you have a $10,000 claim, you would be responsible for paying the first $1,000 of that claim.
The higher your deductible, the lower your premium will be.
Increasing your church property insurance deductible could significantly impact your insurance premiums. If you are considering expanding your deductible, it’s important to discuss your insurance needs with your church leadership before making a decision.
A Church Insurance Agency can Save you Money and Reduce Liability Risks
A church insurance agency specializes in providing insurance to churches. They can access specialty insurance companies like GuideOne Insurance, Church Mutual Insurance Company, Great American, and Philidelphia Insurance.
These companies provide liability policies for churches beyond other businesses’ basic coverage. I have the appropriate range that allows churches and ministries to operate without fear of significant financial losses.
Only a small handful of insurance agencies specialize in churches, and Integrity Now Insurance Brokers is one of the top insurance companies that can help obtain the needed coverage.
Working with a Church Insurance Agent: Obtain Church Insurance Package Quote
When you work with a church insurance agent, you can expect them to know the different coverage types available and how they can be tailored to your needs. They will also be able to work with you to create a package policy that fits both your needs and your budget.
Reach out to one of our knowledgeable church insurance agents, who will provide you with an insurance quote that offers the coverage your organization needs.
Integrity Now Insurance Brokers is licensed throughout the United States and has helped thousands of churches.
We can be contacted by phone or by completing our online church quote form.
