Church Insurance Companies Response To A Struggling Church Insurance Market: Cancellations And Higher Church Insurance Rates
As an independent church insurance agency, Integrity Now Insurance Brokers helps thousands of religious organizations nationwide annually.
2024 has been a challenging year for small and large churches as church insurance companies tighten their underwriting guidelines.
No insurance company specializing in churches and nonprofit organizations is immune from this hard market, which has left many churches with few options.
Challenges Faced By Churches Losing Property Insurance Coverage
In the past three months, Integrity Now Insurance Brokers received nearly 8,000 inquiries from religious groups seeking relief on their church insurance program. This includes churches facing 40% or more in premium increases or receiving a notice from their insurance company that they are being canceled.
This is not simply an individual state issue but a national problem religious organizations are experiencing.
One California church was canceled by its insurance company and was forced to join the California Fair Plan. Their insurance premiums increased from $26,000 annually to over $86,000.
This church had a minimal claims history and was a steller risk on paper outside their location, prone to fires.
Nebraska is another state where churches that have never filed an insurance claim are being canceled by their church insurance company for no reason besides the insurance company leaving their state. Thankfully, Integrity Now insurance brokers have access to an affordable church insurance company that offers the needed coverage at a competitive price.
Some States are facing even harder insurance challenges, including:
As church insurance agents, we are facing additional hurdles from church insurance providers limiting property coverage for some of the following reasons.
- Older church buildings (built before 1950, older than 60 years, or older than 100 years)
- Buildings with frame construction exceeding 60 years of age
- Roofs older than 20 years old (even if your church put on a 30 or 50-year roof)
- Filed any claim in the past five years
- Filing a claim over $20,000 in the past five years
Depending on the insurance company, these underwriting guidelines must be met before we can place a church with that specific provider. These are just some of the guidelines insurance companies are adding to limit their risk exposure.
Churches Need to be Prepared for Increased Church Insurance Costs
Not all churches are facing significant increases in the cost of their insurance; however, many are. Board members and church leaders must increase their allocation for insurance costs beforehand to prepare for this increased cost.
Integrity Now Insurance Brokers receives calls from churches, which face several thousand dollars in increased costs daily. We recommend churches increase their property deductibles to $5,000 or $10,000 to help manage the higher insurance premiums.
Many insurance companies are also eliminating the option for $1,000 deductibles and increasing deductibles to a minimum of $2,500. This is an attempt by insurance providers to reduce small claims and encourage organizations to take on these claims themselves rather than turning them over to the insurance company.
Reasons For Insurance Companies Dropping Texas Churches
Many church insurance providers have been experiencing an increase in insurance rates in recent years, particularly in Texas, due to a surge in Texas church insurance claims. The insurance industry has been faced with rising insurance costs, partly due to the increase in severe weather events impacting the state.
As a result, companies such as Church Mutual, Brotherhood, and GuideOne Insurance have been tightening their underwriting standards, potentially leaving church clients without adequate insurance coverage.
This has led to a scramble for new insurance solutions for churches across Texas. In response to the surge in church insurance rates, some insurers have exited the Texas market altogether, leaving church organizations to find insurance policies that meet their specific needs.
One of the biggest challenges facing churches in Texas is finding insurance for Texans that offers Texas church insurance tailored to their church property and liability needs.
Some small church insurance programs may not fully cover churches’ unique risks, such as damage to church building insurance from severe weather or accidents within the church. Insurance agencies like Integrity Now Insurance Brokers understand the surge in the Texas church insurance market is essential in providing insurance that meets the specific needs of churches.
Some Church Insurance Providers are Starting to Cancel Coverage for Churches
Some church insurers are starting to cancel church coverage for various reasons, such as increased insurance building replacement costs, higher reinsurance costs, and church insurance providers being downgraded by AM Best due to financial difficulties.
Insurance providers specializing in religious organizations have no choice but to try cleaning up their financial records by canceling insurance policies in specific states and churches with high claims frequency and losses.
It is vital to work with an experienced church insurance agent with a national presence like Integrity Now Insurance Brokers, which has access to some of the best church insurance companies. We ensure your church is able to shift to a new insurance company when your current church insurance provider can no longer serve your members.
Independent Church Insurance Agent Help: Church Insurance Solution
Integrity Now Insurance Brokers is here to help your church find an insurance policy that is both affordable and provides the insurance coverage your church needs. We understand the unique risks and challenges that churches face, and we are committed to finding the best church insurance solutions for your specific needs.
Our team of experienced insurance professionals will work with you to assess your risks and create a customized insurance plan that provides comprehensive coverage for your church property, liability, and other potential exposure areas.
Whether you are looking for a basic insurance policy to cover your building and assets or need more specialized coverage for events, vehicles, or other specific needs, we can help.
We aim to provide peace of mind, knowing that your church is protected and prepared for unexpected events.
Contact us today to learn more about our church insurance options and to receive a personalized quote for your coverage needs. We look forward to serving you and helping you find the right insurance solutions for your church.
FAQ
Why are insurance companies dropping churches?
Insurance companies are dropping churches due to the complexities of church insurance and increased insurance costs to rebuild churches due to fire.
Why are churches hard to insure?
Religious organizations are complex to insure because many large insurance companies are unwilling to offer the coverage churches need. In addition, many churches are only occupied one or two days out of the week, which increases the insurance companies’ risk exposure.
What are underwriting guidelines in the church insurance industry?
Underwriting guidelines are specific criteria that insurance companies use to assess the risks associated with providing coverage. For churches, underwriting guidelines may vary depending on the size of the congregation, location, and history of claims.
Why is church property insurance so expensive?
Church insurance can be expensive for a variety of reasons. One factor is the risky nature of insuring places of worship, which are vulnerable to potential damages and liability issues. Additionally, limited competition in the market can drive up prices.
