We are currently in a difficult insurance market.

This has been fueled by several factors:

  • the traditional church carriers have experienced several years of underwriting losses;
  • storm-related losses are increasing;
  • social inflation has increased the cost of construction and repairs;
  • freeze and leak-related water damage claims have increased and;
  • increased litigation and rising judgements have affected both the property and liability lines of coverage.

As a result, carriers are raising prices, not renewing accounts, and modifying the terms and conditions of their policies. For example, deductibles are increasing and wind coverage is becoming hard to obtain in some areas.

In addition, some carriers are pulling out of states completely and have reduced staffing to levels that make it difficult to keep pace with increased numbers of applications.

In the 1970s, churches had trouble identifying and purchasing adequate coverage. The United Methodist Church responded by mandating that the General Counsel of Finance and Administration make an insurance program available to all ministries and agencies. This appears in the 2016 Book of Discipline in ¶ 807.19.

Today, that mission is fulfilled by the United Methodist Insurance Program (UMIP). The United Methodist Insurance Company, Inc., entered into an agreement with the Sovereign Insurance Group (Sovereign) to act as its exclusive agent. 

Sovereign has been in the business of placing coverage for churches and nonprofits for over 60 years. They have access to over 30 carriers that provide coverage to churches and many specialty carriers that place unique exposures. They are on the agent advisory board of three of the four leading companies that insure churches.

UMIP, through Sovereign, uses these carriers and programs that are proprietary to Sovereign to help churches find coverage when they are non-renewed, having trouble finding coverage, or simply looking for the best option for their ministry.

Here are some tips for shopping in the current market:

  1. Pick an agent that understands church risks and has access to many markets.
  2. Start shopping early – 120 days in advance is ideal to make sure your application is complete and marketed in a timely manner.
  3. Prepare as much information as possible (e.g., age of building, construction, system updates, etc.)
  4. Explain large losses and steps taken to reduce the chance of reoccurrence.
  5. Pay your premiums and value your renewal quote. Carriers are much less likely to reinstate coverage now.

UMIP is always here for you. We are the United Methodist Church’s insurance program. We will not turn away any ministry without doing everything we can to get you the right coverage at the best possible price.

To get a quote, visit www.uminsure.org or call 484-654-3380.