The General Council on Finance and Administration (GCFA) has approved changes to the Proper Insurance Coverage Standards.

The updates provide more nuanced figures by addressing three size categories rather than the two used in prior documents. The new standards now address inland marine coverage, boiler and machinery/equipment breakdown, earthquake, and flood insurance. Additional guidance on the use of functional replacement valuation for property insurance can help churches to make sure the savings justify any additional risk retained.

Jeff Koch, President and CEO of the United Methodist Insurance Company said, “The document also reminds churches that there are circumstances that may require them to purchase additional limits or coverages.” Mr. Koch added, “Churches continue to be responsible for maintaining proper coverage which may include higher limits and additional coverages. We recommend that these decisions be made in consultation with a licensed insurance advisor experienced in the church market. Also, if they are part of an Annual Conference program they may have limited options, but access to premium, terms, and limits they may not get by shopping on their own.

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