Alberta is growing fast. As of January 1, 2025, the province was home to 4,960,097 residents, up by more than 168,000 people in just one year. This is a 3.51% jump that reflects new families, ideas, and energy.
Churches are also feeling the growth. These buildings, once used only on Sundays, are becoming vibrant community spaces. Renting out church space is becoming a practical way to stay engaged, meet local needs, and support financial sustainability.
However, with opportunity also comes responsibility. Renting space to the public isn’t without risk. There are legal obligations, insurance considerations, and property management protocols to keep in mind.
In this post, we’ll break down the essentials:
- Legal considerations
- Liability and risk management essentials
- Insurance coverages churches should have
Whether you’re considering rentals for the first time or looking to improve your process, this guide will help you do it with clarity and care.
The Rise of Church Space Rental in Alberta
Across Alberta, churches are opening their doors for more than worship. They are hosting birthday parties, fitness classes, support groups, community meetings, music lessons, and wedding receptions. Some rent out their halls weekly or provide classrooms or kitchens by the hour.
This increase in church space rental is no surprise. Many churches face rising costs like heating, insurance, cleaning, and repairs. At the same time, communities are seeking affordable and flexible spaces. Churches are stepping in to fill the gap.
For many, church rentals are not just about making money; they are about staying active and serving others. Thus, churches are being used throughout the week, not just on Sundays.
Still, renting to the public also means taking on risks that extend to damage, injury, and liability. These things can happen fast. Without structure or protection, a single event can cause significant problems. Below are some factors that churches need to know.
1. Legal considerations
Renting out church space might seem simple, but it is not just about handing someone a key and unlocking the door. As soon as a third party uses the building, the church takes on legal risks. This translates to responsibility and a potential liability.
Before anything is booked, church leaders need to check local laws, such as zoning rules, fire codes, building safety, and municipal bylaws. Alberta has specific requirements, and churches must follow them all.
Another important consideration is a written agreement. This should list the terms, which encompass fees, times, rules, cleaning duties, damage, and liability. Verbal deals should not be accepted as they can lead to confusion and conflict.
Churches should also ask if the rental reflects their values. Is the activity or event appropriate for this space?
With good planning and strong property management, things will be poised to run smoothly. Additional steps, such as the right rental insurance, make the church space safer for everyone involved.
2. Liability and risk management essentials
Every event held on-site brings a new set of variables. For instance, a guest could slip on wet stairs, or furniture might get damaged. Equipment could be mishandled, stolen, or become faulty. These incidents, even when minor, can lead to serious consequences.
This is why risk management must be a priority. The first step is getting church rental insurance. It protects you in case of property damage, accidents, or legal claims tied to third-party use. There should also be a clear system in place that includes renter screening, written rental agreements, and event checklists. Every group should be reviewed before approval. The purpose of use should be appropriate.
Churches should request proof of rental insurance from all renters, with no exceptions. Fire exits and emergency contacts should be posted. Walk-throughs before and after events help reduce confusion and protect against disputes.
Churches should develop formal property use guidelines for the rental or use of the facilities that align with the church’s values and expectations of those renting the church.
The standard management of property and the right rental insurance coverage will always ensure that each church space is handled with care and accountability.
3. Rental insurance coverage (and what churches must have in place)
As earlier established, contracts, rental agreements, safety policies, and solid property management are all essential. But none of these replace the need for proper insurance coverage. When third-party groups use church property, the risk landscape changes—and many churches mistakenly assume their general insurance will cover all activities. Often, it doesn’t.
Renting out your space brings unique liabilities. That’s why it’s important to understand the types of insurance your church should carry:
- Church Property Insurance: Like commercial property insurance, this policy protects the church building and its contents from damage caused by fire, flooding, vandalism, or other incidents. It can also cover valuable items such as sound systems, pews, instruments, historical artifacts, and office equipment.
- Church Business Interruption Insurance: If rentals are paused due to property damage or unexpected closures, this coverage helps recoup lost rental income and maintain financial stability during downtime.
- Church Crime Insurance: This coverage protects against theft, fraud, or misuse of church funds or assets. Volunteers, guests, or even staff can sometimes be involved.
- Church Liability Insurance: Churches, unfortunately, are not immune to theft, fraud, or financial misconduct—even from within. Crime insurance protects the organization from losses caused by volunteers, staff, or guests.
- Directors and Officers (D&O) Insurance: This protects the church’s leadership—board members, officers, and decision-makers—if legal action is taken against them for decisions made on behalf of the church.
- Don’t Forget Renters Need Insurance Too: Even if your church has robust insurance, your renters should also carry liability insurance. Their policy covers damage or injuries caused by their own negligence. Without it, your church could be held legally or financially responsible—a risk no organization can afford to take.
Always request proof of liability insurance from renters and include this requirement in your rental agreements. It’s a simple step that protects everyone involved.
What could go wrong without church rental insurance?
Without church rental insurance, a lot can go wrong quickly.
- If someone gets injured during an event, the church may be held legally responsible. That could mean a medical bill or even a lawsuit.
- Should equipment get damaged or stolen, the cost to repair or replace it may fall solely on the church. This includes sound systems, chairs, projectors, or musical instruments.
- If a group cancels a booking and the church loses money, there is usually no protection for that loss. Without proper rental insurance coverage, the financial hit stays with the church.
- Property damage is another concern. A fire, water leak, or accidental damage caused by the renters can lead to repairs and additional costs.
- In the event that the renters are not required to carry their rental insurance, the church ends up covering everything without backup or support.
These insurance Canada options are strategically designed to protect churches from such risks and avoid financial setbacks.
Covered With Care: Why Churches Trust MMI Insurance
MMI Insurance understands that churches carry a deep responsibility. We have been a proud member of the Mennonite community and have supported Alberta churches and religious organizations for over 60 years. Our focus always lies on protecting what matters most with insurance that fits real needs and not just on paper.
Church rental insurance from MMI isn’t a one-size-fits-all option. Every policy is shaped around each church’s space, mission, and community use.
Church insurance options include:
- Church property insurance
- Church business interruption insurance
- Church crime insurance
- Church liability insurance
- Directors and officers insurance
- Optional extras like church building contents and pastoral counselling coverage.
Every church is different, so we take the time to listen and understand the risks and provide our rental insurance coverage choices.
In addition, MMI has the ability to offer short term policies for those renting the church.
Smooth property management and rental peace starts with a plan, and it starts here. Reach out to MMI Insurance today at 866-222-6996, or contact us online to build the right church rental insurance coverage for the space, mission, and people it involves.
