From $6,000 to $30,000 a Year: Church Insurance Premium Hikes Leave Congregations Scrambling

• Washington Street UMC in Petersburg, Virginia, saw its premium rise from $6,000 to $30,000
• Wright’s Chapel UMC in Tennessee went from $900 to $4,600
• Pacific Northwest churches faced 40 to 50 per cent increases
• The insurer said it was working to correct problems with coverage quotes

United Methodist churches in several states were hit by sudden increases in their insurance costs, UM News reported in February 2019.

Washington Street United Methodist Church in Petersburg, Virginia, saw its annual premium quoted at $30,000, up from $6,000. “We were shocked, to say the least,” said the Rev Tom Lester. Wright’s Chapel UMC in Cookeville, Tennessee, went from $900 to $4,600, and churches in the Pacific Northwest Conference faced increases of 40 to 50 per cent across 242 congregations. Companies involved included United Methodist Insurance and AmVenture.

Jim Allen of the Tennessee Conference said: “I was very frustrated to receive multiple calls just before the Christmas break from church pastors and trustees.” Mike Plesko, president of United Methodist Insurance, said of efforts to reach churches: “It was taking them quite a long time.” Sam Liotta, president of AmVenture, said: “We are actively seeking ways to correct any problems created by the coverage quotes received by churches insured with UMI.”

Lester also said: “We didn’t have worship. We didn’t have recovery groups.”

Insurance is a fixed cost of owning a church building, and sudden increases can overwhelm small congregations with tight budgets. The episode came years before the wider church insurance crisis of 2023 and 2024.

Jamaican churches should review their policies every year, compare quotes, and make sure the sum insured reflects the true cost of rebuilding. Denominations may be able to negotiate better terms by insuring churches as a group. Keeping buildings well maintained and reducing risks such as faulty wiring and weak roofs can also help keep premiums down.

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