Church Insurance Market Update: October 2026
Church insurance premiums are still rising in late 2026, but the pace has slowed from the 2023–2024 spike, and the bigger risk for most congregations is now non-renewal rather than price. This update pulls together what carriers, brokers and churches reported between January and October 2026, what it means for your 2027 renewal, and the specific steps that have been working for the churches we insure. (This post replaces our July 2025 update.)
Integrity Now Insurance Brokers is an independent church insurance agency. We place coverage for churches in all 50 states and are paid by carrier commission, so there are no broker fees.
The numbers: what churches are paying in 2026
- 5% to 20% a year. That is the range of annual premium increases most churches nationally are seeing, according to Peter Persuitti, who leads Gallagher’s religious and nonprofit practice (Spokesman-Review, Sept. 4, 2026).
- 10% to 15% a year, for several years running. The Pacific Northwest United Methodist Conference’s treasurer described that as the lucky end of the range.
- 84%. The increase in median congregational spending between 2020 and 2025, per the Hartford Institute for Religion Research’s 2026 report, driven largely by buildings, maintenance and insurance. Spending on staff, programs and missions fell by about nine percentage points over the same period.
- $2,500 to $5,000. The minimum property deductibles most carriers now require. A $1,000 deductible is rare in 2026, and wind/hail deductibles are increasingly written as a percentage of building value in storm states.
- $300 to $450 per square foot. The replacement-cost minimums carriers apply to sanctuaries. Churches still insured at $100 to $150 per square foot are underinsured and may face a co-insurance penalty at claim time.
Non-renewal is the real story of 2026
Price increases get the headlines, but the churches that contacted us in the worst position this year were the ones whose carrier simply declined to renew. Three cases reported in the press this year show the pattern:
- New Community Church, Spokane. In fall 2025 its carrier said covering the congregation’s 1905, 30,000-square-foot building was no longer economical. The only other quote was about $48,000 a year, three times the previous premium and about 10% of the church’s budget. The church sold the building and now rents; its insurance dropped to about $3,000 a year.
- Vineyard Church, Yakima. Its insurer required a full electrical upgrade of the 116-year-old building as a condition of keeping the policy. The church closed the building instead (Yakima Herald-Republic).
- Dimension Church, Dexter, Missouri. Church Mutual cancelled its property policy for non-payment in February 2024 and mailed the notice to an address missing the church’s mailbox number. A federal court ruled in May 2026 that the cancellation was ineffective because the notice did not go to the church’s last known mailing address; damages went to a jury in October (Missouri Lawyers Media, May 20, 2026). The lesson for every church: keep your mailing address current with the carrier and open every envelope.
The earlier wave is still being felt in the South. In early 2024 Church Mutual withdrew from Louisiana, was reported to have dropped more than 1,000 Texas churches, and congregations that found replacement coverage saw premiums jump from $6,810 to $21,392 (Beaumont, Texas, with windstorm excluded) and 44% to $14,050 with a doubled deductible (Glenmora, Louisiana) (The Christian Chronicle). If you received a non-renewal notice, our guide to navigating non-renewal of a church insurance policy walks through the timeline.
What is driving it
Weather losses and reinsurance
Hurricane Isaias made landfall near Destin, Florida, on October 9, 2026 as a Category 2 storm; Verisk estimated $1 billion to $2 billion in insured losses, and many property claims fell below policyholders’ deductibles (Claims Journal, Oct. 14, 2026). Each storm season resets the price carriers pay for reinsurance, and that cost is passed through to churches in Florida, Texas and the Gulf states first and everyone else second. Our posts on whether church insurance covers flood damage and California church insurance and the FAIR Plan cover the regional specifics.
Abuse and “nuclear” liability verdicts
The Archdiocese of San Francisco announced a $395 million settlement in June 2026, and the Insurance Information Institute points to settlements of $10 million or more as a direct driver of liability pricing for every religious organization, not only the ones involved. Expect abuse and molestation coverage to be sub-limited, priced separately, and conditioned on written child-protection policies and background checks.
Rebuilding costs and aging buildings
Construction costs rose roughly 50% between 2020 and 2021 and have not come back down. That is why carriers now insist on current replacement-cost valuations, and why older church buildings with original roofs, wiring and plumbing are being declined. Several carriers will not quote a church with a roof 20 years or older, and our agents are not permitted to submit those applications to them. See how roof neglect affects coverage and insuring historic church buildings.
Carrier appetite
Rate filings tell the story. Between 2019 and 2024, commercial property rate changes averaged about 3.8% a year at GuideOne and 20.4% at Brotherhood Mutual, with 2024 filings of 8.7% and 30.6% respectively, per state filings reported by The Christian Chronicle. Different carriers are pricing the same church very differently, which is the strongest argument for getting more than one quote.
New in 2026: a denominational captive in Texas
The Baptist General Convention of Texas launched its own church property and liability program in October 2025 through Covenant Solutions, a South Carolina captive insurer, with underwriting by King’s Cover. It soft-launched with 241 churches, was slated to open to all BGCT and SBTC churches by November 2025 and then to other denominations, and the board authorized up to $12 million to capitalize reserves; churches that give to the convention qualify for 1% to 5% discounts (Baptist Standard). Captives can be a good answer for churches the standard market has abandoned. They also carry trade-offs: a captive’s claims-paying ability is only as strong as its reserves and reinsurance, exit terms can be restrictive, and the premium is not always lower than an independent quote. If you are offered a denominational program, compare it against the open market before signing; we are glad to run that comparison for Texas churches.
Where the market is heading
Both Gallagher and the Pacific Northwest UMC conference told reporters in September 2026 that the market appears to be stabilizing: increases are expected to slow, not reverse. The Insurance Information Institute calls insurance a lagging indicator, meaning premiums follow the economy with a delay. Our own placement experience this year matches that: standard-market carriers are quoting churches they would not have looked at in 2024, provided the building documentation is in order.
Your 2027 renewal checklist
Start 90 to 120 days before your renewal date. Carriers need time to inspect, and a 30-day window leaves no room to shop.
- Confirm your mailing address and contact person with the carrier in writing. The Dimension Church case turned on a missing mailbox number.
- Update your replacement-cost valuation if it is more than three to five years old.
- Document the four building systems (roof, electrical, plumbing, heating): installation years, inspection letters, receipts.
- Collect your child-protection policy, background-check records and training dates. Abuse coverage is priced on them.
- Write or update a one-page security plan. It helps liability pricing, and the same paperwork supports a federal Nonprofit Security Grant Program application; FEMA made $300 million available for FY2026.
- Decide your deductible strategy. Moving from $2,500 to $5,000 on property, and keeping small losses off the policy, is the most reliable lever churches have.
- Ask for at least three quotes through an independent agent, and compare the exclusions, not only the premium: windstorm, water backup, equipment breakdown and abuse sub-limits are where the quotes differ.
- Review cyber coverage. Churches handling online giving and member data were hit by ransomware groups in 2026; see cyber liability insurance for churches.
Our church risk score tool gives you a quick read on how an underwriter would see your church before you apply, and our small church insurance page lists typical 2026 cost ranges by coverage.
How Integrity Now Insurance Brokers can help
We shop church property, liability, abuse and molestation, auto, workers’ compensation and cyber coverage across multiple carriers, including the non-admitted market for buildings the standard market has declined. We will tell you if a denominational program is the better deal. Request a church insurance quote or compare insurance for churches by carrier.
Frequently asked questions about the 2026 church insurance market
How much did church insurance go up in 2026?
Most churches saw annual increases of 5% to 20%, according to Gallagher’s religious-practice lead; some denominational conferences reported 10% to 15% a year for several years. Churches in hurricane and wildfire states, and churches with older buildings, saw more.
Why is church insurance so expensive right now?
Four drivers: weather losses and the reinsurance costs they create, large abuse-related settlements that raise liability pricing for all religious organizations, construction costs that pushed replacement values to $300 to $450 per square foot, and carriers tightening underwriting after several unprofitable years.
Is the church insurance market getting better?
Brokers and denominational treasurers said in September 2026 that the market appears to be stabilizing, meaning increases should slow rather than reverse. Carriers are also quoting some churches they declined in 2024, provided the building documentation is current.
What should a church do if its insurance is not renewed?
Act the day the notice arrives. Confirm the reason in writing, fix or document a plan for the stated issue (usually roof, wiring, plumbing or claims history), and have an independent agent submit the church to multiple carriers, including the surplus-lines market if needed. A 30-day window is tight; 60 to 90 days is workable.
Are denominational insurance programs or captives a good idea?
They can be, especially where the standard market has pulled back, as in Texas. Compare the captive’s premium, deductibles, exclusions, reserves and exit terms against at least one independent quote before committing.
What deductible should a church carry in 2026?
Most carriers now require at least $2,500 to $5,000 on property. Choosing $5,000 and keeping small losses off the policy is the most dependable way churches have found to hold premiums down, provided the church has reserves to cover it.
This update is general information, not legal or financial advice. Figures are drawn from the sources linked above and from our own placements; your church’s premium depends on its carrier, state, building and claims history.
