Managed repair programs have started showing up more often in Texas church insurance as insurance companies look for ways to control the rising cost of property claims. They can sometimes help lower the insurance premium, but that savings comes with a tradeoff. Your church may give up some control over how its building gets repaired after a claim.
The Hailstorm in Waco
Last spring, a small church in Waco got hit by a major hailstorm. Their roof was damaged so much that water was dripping onto the sanctuary carpet. A member of the congregation owned a local roofing company and had done work on the church building for years. His guys knew the building and understood its history. They had repaired or replaced the roof after many previous storms.
Only this time was different. The church bought a different property insurance policy last year. By signing that contract, they agreed to use the insurance company’s managed repair program after any property loss.
Instead of simply choosing the contractor they had trusted for years, the church was required to follow the insurance company's repair process. The carrier selected the contractor, established the approved scope of work, and determined what repairs satisfy the terms of the program.
The church had saved money on their property policy, but the trade-off was that they could no longer use the contractor that they had trusted for many years.
How Does a Managed Repair Program Work?
The exact rules depend on the policy, but a managed repair program generally gives the insurance company more control after a covered property claim.
This may include:
- Choosing an approved contractor
- Determining the scope of repairs
- Controlling which vendors perform the work
- Establishing what repairs will satisfy the claim
- Managing parts of the repair schedule
This is different from a more traditional claim where churches have greater freedom to select their own contractors and work with the insurance company on the cost of repairing the damage.
Why Do Managed Repair Programs Lower Insurance Premiums?
Texas property claims have become more expensive because of hail, wind, rising construction costs, higher labor expenses, and the overall size of property losses. Managed repair programs give insurance companies more control over what gets repaired, who performs the work, and how much the repairs cost.
That extra control can help the insurance company reduce claim expenses. In return, the church may be offered a lower insurance premium.
The important part is understanding the trade-off.
Your church may save money on the front end, but you may also give up some of the control you are used to having after a claim. You may not be able to choose your own contractor, and the insurance company may have more say in the scope and method of repairs.
That does not automatically make a managed repair program a bad option. It simply means the lower premium comes with conditions. Your church needs to decide whether the savings are worth giving up some control when it is time to repair the building.
Evaluating Your Church's Risk Exposure
A lower insurance premium can look very attractive when your church is trying to control expenses. But the time to find out who controls the repair process is not after a storm has already damaged your building.
Through our True Texas Church Insurance program, we help you understand how your policy will actually work before you buy it. That includes explaining managed repair provisions, deductibles, exclusions, limits, and other details that can affect your claim.
A managed repair program may help reduce what your church pays for insurance, but it can also mean giving up some control when it is time to repair or rebuild.
The goal is not just to find a lower premium. It is to understand what you are giving up to get it.