Churches face many perils of property damage and liability claims that are both common to the world of commercial insurance and unique in the way of exposures. Religious institutions can suffer the more common losses caused by fire or theft, or liability claims based on a slip and fall. However, at the same time, some churches must cope with an exposure to loss based on a one-hundred year old stone building that can have no economically realistic replacement cost value, or a liability exposure that can combine the most hazardous facets of a church, a school, and quite possibly, a cemetery or other exposure.

Fire is the greatest cause of property losses for religious institutions; this includes arson losses that may be set by either vandals or juveniles, or by burglars and thieves trying to conceal evidence of their crimes. Conditions that are particular to churches, such as accessible but frequently unoccupied buildings, large open spaces, and unique architectural features, contribute greatly to fire losses. In addition, fire losses are not confined to a building that may be an example of unique and stately architecture; the contents of churches, such as organs, statues, and religious artifacts, are also unique objects that can be lost to a fire.

Lightning is another frequent cause of loss to churches. The architectural features that characterize some religious buildings, such as bell towers and clock towers, steeples, domes, and cupolas, act as frequent targets for lightning strikes. Such strikes can damage not only the building but also interior electrical apparatus, such as a public address systems, computers, or electronic musical instruments.