Renting with Confidence: UMI’s Church Property Precautions
Renting church property to third parties can be a valuable source of income for churches, and an excellent way to foster community engagement; however, it can come with several challenges and risks. Whether you’re hosting community events, support groups, or local organizations, you must implement precautions to protect both your property and congregation. Here are our top four tips to safeguard your ministry:
1. Insurance Coverage and Liability:
Before entering into any rental agreement, your ministry should review its coverage to ensure that your liability insurance adequately protects against potential risks associated with third-party use. United Methodist Insurance recommends that churches require proof of liability insurance from renters, covering potential property damage, personal injury, and other liabilities. Be sure to also add your church as an additional insured to the third party’s liability insurance.
2. Legal Agreements and Contracts:
To establish clear expectations and responsibilities, ministries should draft detailed and legally sound rental agreements. Key components to include in contracts are details of the rental terms, liability clauses, insurance requirements, and guidelines for property usage. A well-crafted contract can serve as a valuable tool in preventing disputes and protecting the interests of your church.
3. Comprehensive Background Checks:
Before allowing third parties access to church property, it is crucial to conduct thorough background checks. UMI recommends verifying the reputation and reliability of potential renters by obtaining references from previous landlords or organizations. Your ministry should also request information about the nature of the event or activities the third party intends to conduct on the premises. This step helps ensure that the church aligns with the values and goals of the renting entity.
4. Eliminate Hazards:
Make sure that there are no slip, trip, or fall hazards. Exits should be clearly marked so that users know the evacuation routes in case of emergency. Additionally, familiarize the third party with any other emergency plans you may have e.g. active shooter.
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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.
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