Running your church demands a wide range of needs, anticipated or not. That's why knowing how church insurance works is crucial to protecting your place of worship and defending against liability. Let's go over four important things to know about church insurance.

1. Property Protection

While churches are holy places, not everybody treats them that way. Vandalism and robbery can devastate your church and cause serious financial complications. As a result, most church coverage will pay for damage to your buildings and vehicles and to replace any stolen items. Note that this protection will protect you from fires and storm damage, though it may exclude earthquakes and floods. Be sure to review your policy to understand everything that's covered.

2. Coverage Limits

Church insurance includes payment terms, such as replacement costs and actual cash value (ACV). Replacement costs help pay for facility renovation after damage and property replacement after a theft. ACV covers the actual cash value of these items, which may not be their replacement value. Speaking with an insurance agent about these options can help you fully understand payment terms.

3. Liability Costs

Liability concerns can affect many churches, such as a visitor suing you for slip and fall injuries. Your insurance policy should protect you from these dangers and provide unique coverage for specific holy days. For example, many companies provide higher coverage limits for high-volume church days, such as Christmas and Easter, to provide maximum protection. Talk with your insurance provider to understand what liability concerns you should be mindful of and the extent of coverage provided on high-volume church days to ensure you're prepared for whatever may occur.

4. Misconduct Charges

Your insurance policy can also protect you when accused of various crimes or misconduct, such as misusing church funds. Your policy can pay your legal fees up to a specific minimum payment and cover your fines. Some even include umbrella protection that raises your liability payout limit.

It's imperative to protect your church from anything that can negatively impact its ability to properly serve the community. If you're looking to speak with an insurance agent about the benefits of these policy types, contact Holmes Agency today. We're happy to help you highlight the different church insurance options, help you pick one that fits your specific budget, and work with you to set up payments.