FAQs

How can you reduce your  Church Insurance Premium?

Parish Insurance is often one of the ‘Big 3’ financial outgoings for a Church of England parish and it is therefore important to consider whether you’re getting value for money for your insurance spend. Here are our ‘top tips’ that we recommend that PCC’s should consider when arranging and renewing their insurance provision.

Tip 1 - If you have not already done so the simple action of obtaining an alternative quotation could lead to a significant premium saving without a reduction in your insurance cover.

Tip 2 - Obtain professional advice on the cover that you actually need as the least cost-effective insurance you can buy is that which is surplus to requirement or for cover that you could not suffer a loss on.

Tip 3 - Examine what extent of insurance cover is sensible, prudent and affordable by considering the points on the following pages when deciding upon the cover you obtain quotations on and eventually take up.

Tip 4 - Consider what amount you would probably not bother making a claim for or that you could afford within your maintenance budget or reserves. Then select a property damage excess which is at least this amount.

Tip 5 - Be guided by an insurance adviser as to the most cost effective excess for your church. Alternatively obtain quotations with some alternative excesses, then compare the difference in the premiums with the difference in the excesses against the frequency you would expect to make a claim for property damage.

Tip 6 - Read the guidance given on Selection of Level of Cover on ParishCare detailed below and liaise with your Archdeacon, where appropriate, when considering taking a lower level of cover. Remember that PCC members are ultimately responsible for the decisions made regarding insurance so take this into account along with what the premium savings are, when deciding this aspect. It could be prudent to insure for more cover than you want; rather than less cover than you may need.

Tip 7 - Some older policies do not include the full range of standard property damage insured events. This should be clearly shown on the insurance schedule so please make sure you are aware of what events you are not insured against and consider what the cost could be if you were to suffer an uninsured loss.

Tip 8 - Speak to an insurance adviser and check what covers you don’t have but are available and at what cost.

Tip 9 - To calculate your appropriate Income Protection sum insured compile the annual income that would be lost or compromised if your premises were unavailable for use. This would typically be income derived from hiring, fees or church activities reliant on the availability of your premises and donations you would only receive at the premises. Then, in order to select the appropriate indemnity period, consider how long it would take for your premises to be fully repaired and back in normal use. Finally multiply the annual income at risk figure by the Indemnity Period you have selected in years plus, if needed, an inflation provision to arrive at an appropriate Income Protection sum insured.

Tip 10 - Whilst some LTA and LTU discounts are significant in percentage terms they only provide a discount on that Insurers Policy which still may not be as good value as that from another Insurer.

Tip 11 - When you contact your current or prospective new Insurer be sure to disclose details of all the insurances you have even if they are due at different times and ask if they offer a reduced premium for a combined policy. If you are in a multi-church parish try working together with representatives of the other churches to present a combined proposal to your Insurer.

Tip 12 - Look to muster agreement and appoint a co-ordinator from within your benefice or deanery to be able to use the ‘Buying Power of the Many’ when negotiating your insurances and approach Trinitas with your proposition.