Church Insurance: What's at Risk?

Last year, the Religion News Service published an article about the challenges many churches are now facing as insurance coverage becomes more difficult to maintain, let alone afford. “An ongoing wave of disasters — Gulf Coast hurricanes, wildfires in California, severe thunderstorms and flooding in the Midwest — along with skyrocketing construction costs post-COVID have left the insurance industry reeling.”

Several congregations across the Synod of the Sun have been dropped by their insurance companies, leaving one congregation uninsured when Hurricane Beryl made landfall last year. Church Mutual, one of the major church insurance companies, no longer provides coverage in the state of Louisiana.

Hurricane Beryl impacted a dozen churches in New Covenant Presbytery with its hurricane winds, rain, and flooding.

The Book of Order of the Presbyterian Church (USA) states, “Each council shall obtain property and liability coverage to protect its facilities, programs, staff, and elected and appointed officers” (G-3.01). Recognizing the difficult position many churches are facing, the leaders of the Presbytery of South Louisiana (PSL) recently hosted a presentation on “Church Insurance Guidance.” Sharon Fortin, Stated Clerk for PSL, delivered the urgent reminder that the “Presbytery is not a backstop for a church that underinsures or goes without insurance.”

She encouraged congregations to connect with their insurance companies to discuss avenues for lowering costs, and encouraged churches that many of the steps to lower premiums often do not cost the church money to implement. Another insight offered to church leaders was to consider, “What is God trying to do with your property? It’s been said that churches should insure for the church they plan to be in the future, not for the church they are now.”

If your congregation is feeling the pinch of insurance premiums or confused about which claims are worth filing with your insurance company, here are some recommendations:

Click here to view the entire slides from PSL’s “Church Insurance Guidance” presentation.

Click here to view PSL’s Insurance Guidance Handout. 

If your congregation could use further conversation partners on this topic, please reach out to kathy.leecornell@synodsun.org.