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Navigating Co-Insurance: A Guide for United Methodist Ministries

Managing church operations and insurance can feel like navigating a maze. Co-insurance, in particular, plays a vital role in risk management and cost-sharing. The United Methodist Insurance Program recognizes the importance of co-insurance and is here to simplify the process for you with some proactive strategies.


Understanding Co-Insurance:

Co-insurance is the requirement that your church maintains policy limits that reflect a minimum percentage of the property’s value. You must maintain this percentage of value in order to receive full coverage for a loss. 80% of value is the usual requirement set by insurance companies.


Why Co-Insurance Matters:

While co-insurance may seem like an added complication, it serves several purposes.

  • Maintaining your coverage at or above the coinsurance requirement ensures that you will receive the full amount due to your church in the event of a partial loss.

  • In the event of a total loss, you will be responsible for any cost above the value set in your policy less any applicable deductibles.


Tips for Navigating Co-Insurance:

  1. Know Your Policy: Understand your co-insurance clause, including your responsibility percentage and any conditions or exceptions.

  2. Update Your Valuation: Have a professional evaluation of the replacement value of your building every three years to ensure that your property is adequately insured.

  3. Keep up With Inflation: Make sure that you update the value each year to track with changes in the cost of construction and any updates, improvements, or additions. 

  4. Risk Management Practices: Implement safety measures, like regular maintenance, staff training, and emergency protocols to minimize risks and claims.

  5. Stay in Touch: Your insurance agent is your ally. Don’t hesitate to ask questions or seek clarification whenever needed.


By understanding the fundamentals of co-insurance and implementing these strategies, your ministry can effectively manage this aspect of your coverage and avoid unpleasant surprises in the event of a loss. The United Methodist Insurance Program stands ready to support congregations of all sizes, providing guidance, resources, and personalized assistance to ensure that you can continue your mission with peace of mind. Find out if we can help save you money by requesting a quote 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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