Storms are not the only trials facing congregations in Texas these days; insurance, an essential shield for properties, has become a costly and elusive necessity for places of worship as premiums rise and coverage dwindles. The United Methodist Church's Texas Annual Conference, enveloping nearly 300 churches, is feeling the stress as it grapples with the insurance industry's retreat from the region. "I’ve received a number of calls, regularly, from churches (affected by insurance woes)," the conference's COO Rev. Will Reed told the Houston Chronicle.
Church Mutual, a major insurer, has foregone renewing policies for some 300 Methodist churches in central and south Texas, as reported by KXAN-TV. Churches that form part of the Rio Texas Conference found themselves seeking new insurance plans after being informed that their longstanding collective coverage would not be extended. "We didn’t have any choice, but to go out to the individual churches and say, we need you to go out and see if you can find coverage because we can’t find coverage for the group as a whole," Kevin Reed, chair of the board of trustees for the Rio Texas Conference, told CW39.
The predicament is not contained within Texas borders; it's part of a broader pattern affecting houses of worship across the United States. Pam J. Rushing, from Church Mutual, explains that the increasing cost of weather-related losses is pushing insurers to reevaluate their risk models and pricing structures. "As the cost of weather-related losses climbs, insurers are asking worship facilities to share more of the risks through higher rates and deductibles," wrote Rushing on an industry website as noted by the Houston Chronicle.
The narrative unfolds amid a landscape where churches’ insurance options are few, forcing those who can secure new policies to contend with steep rate increases. In a twist of financial irony, congregations are not just spiritual hosts but also commercial property owners under state law, and this classification pulls houses of worship into a perilous market. "Frankly, even those people who have been able to find coverage, have found it to be incredibly expensive," Kevin Reed stated to CW39.
While operational aspects like food banks and services continue, the sword of Damocles looms for churches lacking adequate coverage — a storm or fire could strike at any moment, leaving them vulnerable. Ben Gonzalez, a spokesperson for the Texas Department of Insurance, recommends that those in need turn to independent agents to shop around for new policies. New insurers, however, may ask for a dear price, as some congregations have reported increases between $25,000 and $150,000 per year, which underscores the heavy burden for financially modest churches.
