An American business pays approximately $1,488 to $4,080 a year for basic insurance coverage. Much like commercial entities, churches are also in dire need of insurance plans owing to the uncertainty surrounding religious places.
However, for non-profit organizations such as churches, paying high premiums for church property insurance often becomes a difficult task. For this reason, some churches skip investing in property insurance altogether and endanger themselves even more.
If you are paying high insurance premiums right now, looking for church insurance for the first time, or have concerns about the high costs, here’s some help for you.
We’ll tell you some reasons why church insurance costs are higher than regular commercial insurance and suggest 12 ways to bring down your costs.
Why is Church Insurance Costly?
Here are some possible reasons that your church insurance is costly; while you may not be able to control all the factors, you do have a say in some:
- Churches are often old buildings and therefore more prone to damage. This makes their insurance costly.
- If a church is located in an area with a high likelihood of wildfire, flood, hurricane, or fire, it increases the premium.
- The insurance charges are higher if a church has rented premises or outsourced vendors.
- If a church runs a community kitchen, shelter, and other setups where volunteers participate, buying insurance may cost you more.
12 Ways to Cut Down Church Insurance Costs
While you can’t control the age or geographic location of your church, here are some tips to cut down on the church insurance premium.
General Tips
Let’s start with some general church maintenance tips that can reduce the geographic effect.
Consider Your Church’s Dynamics
Churches often have candles, lighting, and bonfire events. In addition, a church may be located in a high wildfire-prone area of California. All these can make the premium of your church insurance skyrocket. The best is to consider these dynamics prior and look for other ways to cut down the cost.
Opt for Preventive Maintenance
If your church building is dated, like many famous churches in the U.S, you can opt for preventive maintenance. This will not only strengthen the structure of your church but also help you reduce the damage in case of a natural disaster like flood, earthquake, or hurricane.
Invest in Safety
One cannot predict or stop a fire from erupting or a flood from entering your church building. However, you can reduce the damage to your church by 73 percent by investing in fire safety equipment. So before you head out to buy insurance coverage, make sure you have optimum safety equipment to assure the insurance company.
Before a Deal
Now that you know the general maintenance tips for your church, here are some ways to cut down the expensive costs of property insurance while buying one.
Hire an Insurance Broker
A church insurance agency is your best bet to get the best insurance policy. An independent insurance broker will be dedicated to you and will ensure you’re not spending more than you need on a policy.
Shop Around
Don’t just pick the first insurance policy you see from the first company you visit. Instead, take some time and compare and contrast various insurance plans with your agent. Make sure to pick an insurance that’s tailored to your needs and is low-cost too.
Opt for Group Insurance
If your church is a part of a larger parish, consider group insurance. This means that you and your fellow churches can approach an insurance company as a group and ask for discounted prices. The insurance company will be happy to accommodate you for a bigger business opportunity.
Pick the Right Deal
Once you are completely satisfied, pick an insurance policy that best fits your needs. Consult your insurance agency at this stage as well.
Look for Overlapping Coverages
Carefully read the policy before signing it. For example, church property insurance may cover church liability claims of theft and vandalism as well. In that case, you can omit general liability coverage offering protection against theft or robbery.
Add or Subtract a Deductible
A deductible is an expense that your church may choose to pay out-of-pocket before the insurance company pays for it. Cut down or add deductibles based on your needs and your agent’s advice. This means you can reduce the coverage for small expenses you can pay for yourself or add those you can’t afford.
Pay in Advance
Most commercial entities choose to pay upfront for the insurance and save costs. This is because by paying at the start of the year, you’ll have one less expense to worry about, and your overall budget will be less impacted by the insurance premium.
Consider Removing the Fluff
Here’s a thing an insurance company won’t tell you. Fluff charges are negligible expenses that often don’t need coverage. This may include the repair of a water pipe or the placement of a broken shingle on the roof. While the cost of these expenses is minute, the insurance company adds it to the total coverage, thus increasing costs. Remove all unnecessary coverage!
Weigh in Premium Against Damages
Now you may find some expenses unnecessary and turn them into deductibles. However, bear in mind that sometimes it may cost you more to pay for those expenses. Therefore, compare the cost of premium with the expected cost of a damage repair/replacement and then make the call. Don’t rush and seek help from your church insurance broker.
Need Help? Here’s a Way for That!
Here’s your last tip to cut down on church insurance costs; get in touch with Integrity Now Insurance Brokers! The church insurance agency will help you find the most affordable church insurance, such as church property insurance, church building insurance, and church liability insurance in California and six other states.
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