What happens if we are under-insured and we suffer a total loss to our church or another building we own?

A total loss can be devastating for a congregation, disrupting not only your place of worship, but also the sense of community and stability it provides. Following a complete loss event, your insurance will only pay up to the policy building limits spelled out on your property declarations pages, which may fall short of the true cost to rebuild.

The organization will be responsible for raising the difference, which potentially could be hundreds of thousands of dollars. Rising construction and labor costs have made it challenging for coverage limits to keep pace with current rebuilding expenses, often leaving properties underinsured as replacement values quickly outpace previously established coverage limits.

This is why it’s very important to never “guess” the value of your church and touch base with your agent annually to ensure your limits will cover the full cost to rebuild, including any specialized craftsmanship and modern building codes. It is also recommended to keep a detailed, off-site inventory of all property, including photographs and videos.