Discover why early detection warning systems are a win-win for churches and insurance companies.

Read about accidental water loss frequency on church properties and risk mitigation.

Churches and insurance risk management unite. Increasingly, church insurance is one sector of the commercial insurance market in which some insurance companies are preemptively requiring insureds that have a loss history to implement specific risk mitigation measures. More precisely, two driving factors have recently intersected: #1 is the problem of accidental water losses on church properties is occurring frequently, and #2 is a partial solution in the form of early detection warning systems. The installation of #2 will not only decrease financial loss due to #1, but it will also provide peace of mind for churches.

In simplified terms, insurance risk management involves the identification, analysis, and evaluation of loss exposures followed by plans and means to address these loss exposures. The goal is to minimize the financial impact of identified loss exposures. Let’s identify some frequent causes of water damage on church properties. First to mind for church property located in winter climates with freezing temperatures, such as Ohio, is pipe bursts. Other common sources of water damage losses are hot water tank leakage, sump pump failure, and leaking pipes underneath bathroom and kitchen sinks. A quick analysis and evaluation of these potential causes of loss reveal resultant water damage to walls, flooring, cabinetry, and furnishings could easily be extensive and costly. Another identifying factor applicable to many church properties is that often no one is on-site, decreasing the likelihood of an “eyes on” early detection of water damage.

The good news is that technology has progressed to the point at which user-friendly, affordable, early warning systems that detect water and monitor indoor temperatures are available for widespread use. Sensor technology is the key, coupled with connectivity to a convenient mobile app that alerts designated contact(s). Early detection prevents or minimizes water damage loss and avoids interruption to your church’s ministry. Implementation of an early warning system is a smart, reasonable means to protect your church facility from some common causes of water damage, as well as preserve its availability to your congregation and community members as needed. From the standpoint of insurance, in order to remain viable, insurance companies must manage loss ratios. Proven measures to mitigate loss improve overall loss ratios, which impacts future rates and premiums for all churches.

While early detection water and temperature warning systems are not across-the-board requirements for all church insureds, it is likely that the win-win benefit will catch on and encourage expanded interest in installing them.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for church insurance. We listen to your church’s insurance concerns and understand the church insurance market.