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How to Compare Insurance Options

Updated: Oct 22, 2023

So, you've decided to shop insurance for your ministry - but how to know which one? The first step is to compare apples to apples. Are limits, deductibles, and exclusions all the same? That's just the starting point. Your agent should help with this – cheap coverage can be very expensive.

  • Watch out for coinsurance penalties. One way of lowering property premium is to insure to limits that are below the replacement cost. Make sure that value meets the minimum replacement value of the property or you may incur a penalty on a partial loss and a recovery that is less than the replacement cost in the event of a total loss.

  • Consider the service reputation of the carriers. A carrier with fast, fair, and honest claims handling services can be a great value at a time that may be critical to the ongoing life of the church. Many carriers offer a wide variety of risk management services that could help prevent loss and save the church money. Take these into consideration. They may not be the sole determining factor but if the choice is close they could be the deciding factor.

  • Consider the financial position of the carriers. It is recommended that you use only carriers with an A.M. Best rating of “A-” and above.

  • Three-year policies. Some carriers offer three-year terms with their coverage. Read the fine print. An offer of a three-year term does not always mean that the price and conditions will stay the same for the life of the contract. It is important to understand what events may trigger changes in your price or coverage.

  • When changing deductibles, consider your loss history and potential exposure.

UMIP is here to help.

We have written a comprehensive BUYING GUIDE for churches that will help you in your journey.

Become more informed during the insurance buying process by downloading today!


This content has been prepared by United Methodist Insurance Company (UMI) for informational purposes only. No article or document may accurately contemplate all possible scenarios or church resources. As such, this information is meant to foster discussion by the individual church and its members to develop a plan tailored to its own circumstances. UMI is providing this information with no warranties or guarantees of any kind and it should not be viewed as legal, financial, or other professional advice. All liability is expressly disclaimed. Any claim examples described herein are general in nature, may or may not be based on actual claims, and are for informational purposes only. Any coverage available for a claim is determined from the facts and circumstances of the claim as well as the terms and conditions of any applicable policy, including any exclusions or deductibles. In the event of a conflict with the content herein, the terms and conditions of any issued policy will control. Individual coverage may vary and may not be available in all states.

The commercial insurance coverages for United Methodist Insurance are sold and serviced directly or indirectly by Sovereign Insurance Agency (CA Lic. No. 0B01380) ("Sovereign") and underwritten by various available insurance markets. Sovereign pays United Methodist Insurance a royalty for the use of its intellectual property.


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