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	The Underinsured Read It and Weep Local Churches Often Skimp on Fire Policies By Brian R. Ballou Boston Globe May 4, 2008 http://www.boston.com/news/local/articles/2008/05/04/the_underinsured_read_it_and_weep/ They are majestic structures, repositories of valuable stained-glass windows, antique pipe organs, and community history. But most churches in the state hold insurance policies that cover only about a quarter of the worth of their property, leaving their congregations to scramble for donations when fires or other catastrophes strike. Three years after a devastating blaze left First Baptist Church in Jamaica Plain a gutted shell, the church is continuing to reach out to the community for donations to help pay for rebuilding. In Marlborough, the congregation of St. Anargyroi Greek Orthodox Church was able to rebuild their burnt-out church only by tapping funds set aside for a new parish house, forcing them to begin raising money anew for that project. "We've been on a fund-raising campaign for so long that people are getting sick of it, getting tired of putting their dollars in every week," said Nicholas Kofos, a member of St. Anargyroi Church for almost 50 years and president of the parish council. These houses of worship, often made of old, brittle wood and plagued with outdated wiring, are particularly vulnerable to fire. But some church leaders, more steeped in religious belief than business acumen, often see insurance as an area where they can cut corners as they seek to make the most of member donations. Churches with smaller congregations are more likely to be underinsured, because they typically lack a staff that has experience with insurance issues and don't have the budget to cover higher premiums. And many churches hold policies from companies that are not likely to realize the true value of churches and their possessions. The lack of insurance has left some churches scouring their pews and communities to find money to rebuild, putting a strain on parishioners and residents at a time when discretionary funds are low for many. Some denominations, such as the United Church of Christ and the Catholic Archdiocese of Boston, have insurance boards or risk management offices that secure policies that cover full replacement costs. The United Church of Christ's plan for member churches in Southeastern Massachusetts provides for an additional 25 percent, up to $500,000, beyond the insured value of a church, if that value proves to be inadequate, said Dawn Hammond, the church's associate conference minister for policy and finance. The Boston Archdiocese, with 294 parishes in 144 communities, obtains full replacement cost coverage for its churches. When Sacred Heart Church in Weymouth burned in 2005, the insurance company paid the full cost of rebuilding, roughly $9.8 million. "We consider our insurers and brokers partners in our programs and continuously develop and nurture those relationships in order to ensure our parishes receive the highest quality support and resources, creative program innovation, and leverage when issues arise," said Terrence C. Donilon, spokesman for the archdiocese. But many other churches use outdated appraisals when seeking insurance, said Paul Connolly, a Milton-based church appraiser who has scrutinized hundreds of churches in the past 30 years. Still others, he said, are simply not aware of their coverage. "What you find with about 98 percent of churches in the state is that they take out these policies that are only pennies on the dollar," Connolly said. "When a fire occurs, they go out to the community with a tin cup." He said he occasionally gets hired by church administrators to come up with an appraisal and gets a typical reaction after submitting his work. "They're in shock, and they're wondering how they'll be able to pay for the premiums," Connolly said. James F. Cobble Jr., who specializes in helping churches nationwide reduce risk and promote safety, said church underinsurance is not unique to Massachusetts, often because the cost of protecting artifacts is so high. "There are a large range of issues related to churches that are unique, such as property like stained glass windows, which I would categorize as unique and expensive attributes that are not easy to replace," said Cobble, who holds doctoral degrees from Princeton Theological Seminary and the University of Illinois and is an associate in risk management with the Insurance Institute of America. Cobble said that up to two-thirds of all churches nationwide secure policies from companies that specialize in church insurance, such as The Church Mutual Insurance Co., based in Wisconsin. The clergy sexual abuse scandals that gained national attention and led to multimillion dollar lawsuits have prompted churches across the country to give more consideration to risk management, he said. "That raised awareness that churches are vulnerable, and by extension raised other kinds of risk management issues." As a result, Cobble said, more churches across the country are reevaluating their fire coverage, as well as liability and other types of coverages. While lightning is the primary cause of church fires, blazes caused by faulty wiring and malfunctioning heating systems cause more costly damage, he said. From 2003 to 2006, there was an average of 68 church fires a year in Massachusetts, according to statistics from the state fire marshal's office. Statistics for 2007 were not available. At St. Anargyroi, a heating unit on the roof of an adjoining church building probably caused a fire in 2001 that spewed thick, black smoke into the church. "It was a disaster for us," said Kofos, the parish council president. "All the money that we had set aside for the construction of a new parish hall had to go to rebuilding the church. It was about a million and a half [dollars]. We were underinsured, by all accounts. We didn't have updated coverage on a lot of property inside the church, like the hand-painted icons from Greece and some other religious artifacts." Fund-raisers were held, including a large barbecue at a local hotel that raised $30,000 and a golf tournament that brought in more money. But seven years after the fire, the church continues to seek donations. St. Anargyroi currently has a membership of about 160 families, down from about 220 before the fire. Connolly did not appraise First Baptist in Jamaica Plain, but he said it represents a worst-case scenario. A fast-moving fire gutted the church in January 2005, and the church received an insurance payout of $2.7 million. The Rev. Ashlee Wiest-Laird, the church's pastor, said last month that rebuilding, with less expensive but sturdy materials, will cost about $7 million. If the church were restored to its original form, it would cost about $12 million, she said. First Baptist continues to solicit private donations and may start rebuilding in several weeks. "The church didn't have enough insurance," Wiest-Laird said. "Even before the fire, we were in the process of increasing our coverage, because there had been a realization that we were underinsured. The church was also working on rebuilding the congregation to improve its economic health, so it would have more money to put into premiums." Martha Khan, 62, of Quincy, a lifelong member of First Baptist, said members remain optimistic that the church will rebuild soon. "We've had a wonderful response from the congregation," Khan said. "Of course, we'd like for the rebuilding to be done as soon as possible, but because of some complications and bureaucracy, it takes a while. As far as the insurance goes, if you look at people whose homes have burned down, they don't get the full replacement amount." She added, "Insurance, it can be very expensive."
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