Hundreds of churches have been told their insurer is no longer going to provide them with earthquake cover.
Ansvar New Zealand specialises in church insurance and is facing $700 million worth of claims since the Canterbury quake in September last year from premiums of just $35 million.
As a result, the insurer has been hit by a substantial credit-rating downgrade.
The chair of the All Churches insurance bureau says more than 600 churches throughout New Zealand are affected.
Don Baskerville says premiums will probably rise and some churches may have to close.
"It's up to our bishops to talk to their priests and the priests to talk to their congregations. People who have worshipped in buildings for four generations may have to say we're going to close the door."
Ansvar is trying to raise more funds overseas, he says.
