Hundreds of United Methodist Churches in Texas are in turmoil after their insurance provider dropped coverage, a move that has left them in a bind as they struggle to find new insurance policies. According to a report by KXAN, these churches were part of a collective insurance plan for generations, and the Rio Texas Conference now has to direct its approximately 300 churches to seek individual coverage.
Kevin Reed, chair of the board of trustees for the Rio Texas Conference, broke the news to KXAN stating, "We were notified...in the fall of '23 that the carrier would not be continuing that coverage." Reed expressed concern, especially regarding potential disasters such as severe storms, hail events, or fires, which could now leave churches exposed and vulnerable. Some churches are already facing problems in securing new insurance, often encountering steep price hikes making the situation dire, particularly for smaller congregations.
The day-to-day operations of these churches, which also run food banks and serve their communities in multiple capacities, haven't yet been compromised. However, the threat of a future calamity hangs overhead without an insurance safety net. Transitioning to individual policy plans is proving to be an uphill battle for these churches, some quoting increases in premiums from "$25,000 a year increase to a $150,000 a year increase," a financial blow that smaller churches are finding hard to absorb.
Douglas Emerick, an insurance expert, shared with BNN Breaking the rarity of this kind of situation. He suggested that "the church might be able to obtain coverage by contacting a local independent insurance agency," though this has not been a catch-all solution. Churches across the state are grasping at straws trying to find affordable policies, a stark reminder of the volatility in the insurance market and its impact on institutions rooted in faith and service.
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