Five Risks Not Covered by Most Home Insurance

Posted under Homeowner’s Insurance, News and Announcements, Personal Insurance.

Home insurance is essential for protecting your house and belongings, but many people are surprised to learn that a standard policy does not cover every type of risk. Knowing what is excluded can save you from unexpected expenses and help you plan better protection for your home.

1. Flood damage

Standard home insurance does not include flooding from rising water or storm surge. For this coverage you need a separate flood insurance policy, often backed by the National Flood Insurance Program.

2. Earthquakes

Damage caused by earthquakes, tremors, or ground movement is not covered under most policies. Homeowners in areas with seismic activity usually need to purchase an additional earthquake endorsement or policy.

3. Sewer or drain backups

If water backs up through sewers or drains, the resulting damage is usually excluded. You can add special coverage for water backup to most home insurance policies for an extra layer of protection.

4. Maintenance issues

Home insurance is designed for sudden and accidental losses, not ongoing wear and tear. Problems like roof leaks from old age, pest infestations, or neglect are considered maintenance and are the responsibility of the homeowner.

5. High-value items beyond limits

While home insurance covers personal property, there are limits for jewelry, collectibles, art, and electronics. If you own high-value items, you may need to schedule them separately to make sure they are fully protected.

The takeaway

Home insurance provides important coverage, but it is not all-inclusive. Flooding, earthquakes, sewer backups, maintenance issues, and high-value belongings are some of the most common gaps. An independent insurance agent can review your policy and recommend affordable ways to close these gaps, giving you peace of mind that your home and valuables are fully protected.

The information shared in this article is provided and written on an opinion basis, and for informational purposes, it solely represents the opinions of Valley Oaks Insurance.

How Insurance Plays a Role in Cryptocurrency Risks

Posted under Cyber Liability, Homeowner’s Insurance, News and Announcements, Personal Insurance, Safety.

The rise of cryptocurrencies has revolutionized the financial world—but with innovation comes risk. Digital currencies like Bitcoin and Ethereum have become attractive targets for hackers, and the platforms that trade them crypto exchanges are facing increasing scrutiny as high-stakes risk hubs. As losses mount from breaches, fraud, and operational errors, insurance is becoming a vital tool in managing the unique threats facing this fast-evolving market.

Why Crypto Is a High-Risk Target

Cryptocurrency exchanges handle massive volumes of digital assets. Unlike traditional financial institutions, many of these exchanges lack the regulatory oversight or infrastructure to protect customer funds. That makes them appealing to cybercriminals looking for vulnerabilities to exploit.

Consider this:

  • In 2024 alone, crypto hacks accounted for over $1.8 billion in losses globally.
  • Many breaches occur due to phishing, weak private key management, or unpatched security flaws.
  • Once stolen, crypto assets are notoriously difficult to recover, thanks to the anonymous nature of blockchain technology.

Insurance as a Strategic Safety Net

Insurance doesn’t prevent crypto crime but it can soften the blow. The right coverage can make the difference between recovering and collapsing after a significant event. Here’s how:

1. Cyber Liability Insurance

Covers the cost of data breaches, including legal fees, customer notifications, forensic investigations, and reputation management. For crypto exchanges, it’s essential due to constant threats from cyberattacks.

2. Crime Insurance

This can include coverage for employee theft, fraud, and third-party hacks. While policies vary, specialized crime insurance tailored for digital assets helps protect against internal and external theft.

3. Directors and Officers (D&O) Insurance

With regulators increasingly eyeing crypto firms, D&O policies protect company leaders from lawsuits related to mismanagement, compliance failures, or investor losses.

4. Custody Insurance

Some insurers now offer coverage for digital assets held in “cold storage” (offline wallets). This ensures that even if a breach occurs, the value stored offline remains protected.

Coverage Gaps and Challenges

Crypto insurance is still evolving, and there are challenges:

  • Limited availability: Many insurers are still cautious about crypto risks due to volatility and unclear regulations.
  • High premiums: Because of the perceived risk, policies can be expensive and come with strict terms.
  • Policy exclusions: Not all digital asset losses are covered especially if caused by negligence or regulatory violations.

A Smart Move for Crypto Businesses

While no policy can eliminate the risks associated with digital currencies, a carefully structured insurance program can provide peace of mind and critical financial support after a loss.

If you’re involved in the crypto space—whether you’re an exchange, wallet provider, investor, or startup it’s time to ask: Do you have the right coverage for your digital risks?

Insurance agents play a key role in helping crypto businesses identify risk exposure, review policy options, and create coverage strategies tailored to this complex market.

Ready to explore your options? Contact us to discover how insurance can safeguard your crypto operation against today’s digital risks.

#CryptoInsurance #DigitalRiskManagement #CyberLiability #CryptoSecurity #BlockchainRisks

Headed to College? Safety and Insurance Tips Every Student (and Parent) Should Know

Posted under Homeowner’s Insurance, Personal Insurance.

As your child heads off to college, there’s more to think about than just textbooks, dorm décor, and meal plans. It’s also the perfect time to talk about safety and review your insurance coverage. Whether they’re living in a dorm or off-campus, your student is taking on new responsibilities—and your insurance plan should be ready to support them.

Here are some important tips to keep your college-bound child protected:

1. Know What’s Covered in the Dorm

Most homeowners insurance policies extend coverage to a student’s belongings if they’re living in a dorm and are a full-time student. But coverage is often limited (typically 10% of your home’s personal property limit), so review your policy carefully. Expensive electronics like laptops, tablets, and gaming systems may need additional protection.

Tip: Create an inventory of your student’s valuables before they leave and check if a renter’s or personal articles policy is necessary.

2. Off-Campus Living Requires Extra Coverage

If your student is renting an apartment off-campus, your homeowners policy usually doesn’t cover their belongings. In that case, renter’s insurance is a smart and affordable option that covers theft, fire, water damage, and even liability.

3. Car Insurance: Keep It Current

If your student is taking a car to school, notify your insurance company of the new location. Rates can change depending on where the car is primarily kept. If they’re not bringing a vehicle, you might qualify for a “student away at school” discount keeping them covered while potentially lowering your premium.

4. Teach Cyber Safety

College students are especially vulnerable to cybercrime, phishing, and identity theft. Talk about strong passwords, safe internet practices, and protecting personal data. Some insurance providers offer identity theft protection as an add-on or stand-alone policy.

5. Health Coverage Check-Up

Most students can stay on a parent’s health plan until age 26, but it’s smart to confirm network availability near their campus. Many colleges offer student health plans as well, which might be a better fit depending on your coverage.

Going to college is a big transition—make sure your insurance plan meets your needs. Need help reviewing your policies or setting up coverage for your student? We’re here to help. Call us today or contact us online to make sure your family is fully prepared for this next chapter.

insurance

Why Are Commercial Insurance Premiums Increasing?

Posted under Commercial Insurance, News and Announcements.

If your business has seen a rise in commercial insurance premiums lately, you’re not alone. Many business owners across industries are noticing higher costs at renewal even if they haven’t filed a claim.

So, what’s driving the increase? Here are the main reasons behind the rising premiums in today’s commercial insurance market:

1. More Frequent and Costly Claims

Across the board, insurance companies are paying out more in claims than ever before. Whether it’s due to severe weather events, property losses, cyberattacks, or legal liability, the number and cost of claims have climbed. That leads insurers to raise premiums to keep up with losses.

Example: One fire or flood can shut down a business for months and cost hundreds of thousands of dollars. That risk is now baked into the price of coverage.

2. Inflation and Rising Replacement Costs

The cost of rebuilding a property, replacing damaged equipment, or covering employee injuries has gone up significantly. Construction materials, labor, and medical expenses have all surged. As those costs rise, so does the amount insurers need to pay when claims happen leading to higher premiums.

3. Increased Cyber Risk

Cybercrime is now one of the top threats facing businesses of all sizes. As attacks become more sophisticated and frequent, cyber insurance claims have skyrocketed. Even if you’re not buying cyber coverage, the ripple effect is felt across the industry, pushing up premiums for everyone.

4. Litigation Trends and Larger Lawsuits

We’re living in a more litigious world. Jury awards and settlements are increasing, especially in liability cases. This “social inflation” is causing insurers to pay more per claim especially in industries like construction, healthcare, and transportation.

Bottom line: Higher legal costs mean higher insurance premiums.

5. Reinsurance Costs Are Climbing

Insurers don’t carry all the risk themselves they buy insurance too, called reinsurance. When reinsurers raise their prices due to global risks (like wildfires, hurricanes, or pandemics), primary insurers pass those increases down to businesses through higher premiums.

What Can You Do About It?

While you can’t control the insurance market, you can take steps to manage your risk and potentially offset premium increases:

  • Work with an experienced agent who can shop multiple carriers and find the right fit.
  • Review your policies annually to make sure you’re not over- or under-insured.
  • Invest in risk management to reduce the chance of claims and improve your insurability.
  • Bundle coverage where appropriate for better pricing.

Premium increases aren’t ideal, but they’re part of a larger trend in the insurance landscape. The key is being proactive, informed, and working with someone who knows how to navigate the current market.

Want help reviewing your commercial insurance plan? We’ll walk you through your options and help you make the smartest decisions for your business.

Rising Insurance Costs: Why Affordability Is the #1 Concern in 2025

Posted under Auto Insurance, Commercial Insurance, Cyber Liability, Homeowner’s Insurance, Life Insurance.

For millions of Americans and especially small business owners the rising cost of insurance has become an urgent and frustrating challenge. While insurance is meant to provide peace of mind, the steep climb in premiums, deductibles, and out-of-pocket costs is creating more stress than security.

According to recent surveys, a staggering 68% of small business owners listed rising premiums as their top concern in 2025. This isn’t surprising when you consider the financial burden placed on employers trying to offer benefits and stay competitive. With inflation affecting everything from materials to labor, adding skyrocketing insurance premiums only increases the pressure on small businesses trying to survive.

But it’s not just business owners feeling the pinch. Even individuals who are insured are beginning to question the value of their policies. In the same set of studies, nearly half of Americans reported difficulty affording monthly premiums, and almost three-quarters said they worry about unexpected medical costs. These fears are well-founded. Surprise bills from out-of-network providers or denied claims can lead to financial strain even for those with decent coverage.

What’s fueling the surge? A mix of factors, including rising healthcare costs, increased climate-related claims, inflation, and provider consolidation, are all contributing to insurance companies raising rates. Moody’s reported that medical inflation and catastrophic loss events are likely to push premiums even higher through 2026.

As costs rise, so does confusion. People are having to make tough choices: choosing higher deductibles just to lower monthly premiums or forgoing coverage altogether. This can lead to underinsurance or lapses in protection, leaving families and businesses exposed to catastrophic risk.

So what’s the solution?

For starters, working with an independent insurance agent can help. Agents have access to multiple carriers and can tailor a plan to your needs and budget. They also understand the fine print helping you avoid costly gaps or overpriced policies.

It’s also important to reassess your coverage annually. With conditions changing rapidly, a policy that worked in 2023 might not be right in 2025.

Bottom line: Rising costs are a reality, but you don’t have to face them alone. Understanding your options, asking the right questions, and having a trusted advisor can make all the difference.

When the Storm Clears: The Harsh Reality of Underinsurance

Posted under Homeowner’s Insurance, News and Announcements, Safety.

Severe weather events, such as wildfires, hurricanes, floods, and hailstorms, have become more frequent and more destructive. But for many homeowners, the real damage begins after the skies clear. That’s when they discover something even more devastating: their insurance coverage is not enough… or worse, not available at all.

Across the country, especially in high-risk areas, insurers are pulling back. Some are raising rates significantly. Others are refusing to renew policies or are exiting certain markets altogether. For homeowners trying to rebuild after a major storm, this can mean delays, denials, or financial shortfalls that make recovery nearly impossible.

One of the most significant issues is underinsurance. Many policies haven’t kept pace with inflation or rising construction costs. That means a home insured for $300,000 in 2018 might cost $400,000 or more to rebuild today but the policy hasn’t been updated. When disaster strikes, the gap between actual rebuilding costs and insurance payouts can leave families with massive out-of-pocket expenses.

Even more concerning is the growing number of homeowners who can’t get coverage at all. In some wildfire-prone or flood-prone regions, insurers are becoming scarce. New policies come with sky-high premiums or reduced coverage, forcing homeowners to turn to last-resort state-run programs that may offer limited protection.

So what can homeowners do?

First, review your policy regularly. Make sure your coverage reflects current rebuilding costs, not just your mortgage or purchase price. This includes reviewing endorsements for items such as extended replacement cost or ordinance and law coverage.

Second, work with a local, independent insurance agent. They often have access to a wider range of carriers and can help you find creative solutions especially in harder-to-insure areas.

Finally, take steps to mitigate risk. Home improvements like fire-resistant roofing, storm shutters, or elevating a structure in a flood zone may make you more insurable and reduce your premium.

Nature is unpredictable. But your coverage doesn’t have to be. Taking action before the next storm could make all the difference when it’s time to rebuild.

Why Contractors Should Consider Excess Liability Insurance

Posted under Commercial Insurance, Workers Compensation.

In construction, risk comes with the job. From scaffolding accidents to lawsuits over property damage, even the most cautious contractors can find themselves facing serious claims. The question is will your current insurance limits be enough when the unexpected happens?

If you’re a general contractor, subcontractor, or specialty tradesman, it’s time to take a closer look at Excess Liability Insurance, an essential layer of protection that could save your business.

What Is Excess Liability Insurance?

Excess liability insurance, often referred to as umbrella coverage for businesses, is a policy that provides additional coverage beyond the limits of your primary general liability, commercial auto, or employers’ liability policies.

Think of it like this:
If your general liability policy covers $1 million and you’re sued for $2 million, excess liability kicks in to cover the remaining amount (up to your excess policy limit).

Why Contractors Need It More Than Ever

1. Construction Claims Are Increasing

Lawsuits are on the rise, and so are settlement amounts. A single job site incident involving injury or significant property damage can result in claims that exceed standard policy limits.

 Real Example: A subcontractor’s employee is seriously injured due to faulty scaffolding. Medical bills and legal judgments surpass $1.5 million. Without excess liability, the contractor would be responsible for the difference out of pocket.

2. Your Clients May Require It

More and more project owners, municipalities, and general contractors require subcontractors to carry excess liability before awarding work. It’s seen as a sign of financial responsibility and professionalism.

Our Tip: Carrying excess liability insurance can give you a competitive edge when bidding for larger or more complex jobs.

3. It Covers the Big Mistakes (and the Expensive Ones)

Standard liability policies have limits. If a lawsuit or settlement pushes beyond those limits, your company’s assets and your future are on the line.

Excess liability ensures your business can survive a major claim. It’s not just protection for today, it’s peace of mind for tomorrow.

4. It’s Cost-Effective Protection

Excess liability insurance is relatively affordable compared to the high-dollar protection it provides. A few extra dollars a month could save you hundreds of thousands in a serious claim.

Value Check: For many small-to-mid-sized contractors, a $1–$5 million excess policy costs less than you’d spend on replacing a stolen tool trailer.

5. It Covers Multiple Policies

Excess liability doesn’t just sit above your general liability; it can extend over your commercial auto and employers’ liability as well. That means if you cause a major accident with your work truck or face a serious injury claim from an employee, you’ve got a backup plan.

Key Industries That Should Strongly Consider Excess Liability:

  • General Contractors
  • Concrete and Masonry
  • Roofing and Siding
  • Electrical and Plumbing
  • HVAC and Mechanical
  • Earthmoving and Grading
  • Commercial Builders and Remodelers

If your business is on that list or if you regularly take on projects with subcontractors or complex risk excess liability isn’t optional. It’s essential.

Let’s Talk About the Right Limit for You

At [Your Agency Name], we specialize in helping contractors understand, customize, and secure the right insurance protection. We’ll help you determine:

  • How much excess liability you may need
  • Which underlying policies it should support
  • How to present it in your bids and contracts
  • And how to keep the cost within budget

Protect Your Work. Protect Your Livelihood.

One large claim shouldn’t be the reason you lose your business. Excess liability insurance helps make sure it isn’t.

We help contractors build with confidence one policy at a time.

How the Right Insurance Can Help You Reduce Summer Losses

Posted under Homeowner’s Insurance, Personal Insurance, Safety.

Summer is a time for fun, travel, and outdoor activities—but it also brings a spike in accidents and insurance claims. From backyard parties and boating outings to road trips and home renovations, the warmer months carry increased risks for homeowners, renters, and business owners alike.

We believe that prevention and protection go hand in hand. Here are some common summer accidents—and how the right insurance can help you reduce risk and recover faster.

1. Backyard and Pool Accidents

Pools, trampolines, and even a slippery patio can lead to serious injuries. Hosting summer BBQs? A guest could easily trip, fall, or worse.

How to Protect:

  • Ensure your homeowners policy has sufficient liability coverage.
  • Consider a personal umbrella policy for additional protection.
  • Install proper fencing, non-slip surfaces, and always supervise children.

2. Boating and Watercraft Mishaps

Boating accidents rise in the summer due to more traffic and less experience on the water. Collisions, injuries, and property damage can turn a relaxing day into a costly disaster.

How to Protect:

  • Carry boat insurance, even if it’s not legally required in your state.
  • Ensure liability, hull damage, and uninsured boater coverage are included.
  • Wear life jackets and avoid boating under the influence.

3. Auto Accidents During Summer Travel

More people hit the road in summer, which means more distracted drivers, construction zones, and increased accident risks—especially for families on vacation.

How to Protect:

  • Make sure your auto insurance includes adequate liability, collision, and roadside assistance.
  • Consider rental car coverage if you’re traveling.
  • Perform a vehicle safety check before any road trip.

4. Contractor or Renovation-Related Claims

Summer is prime time for home improvement. But hiring contractors without the proper checks can result in accidents, damage, or uninsured claims.

How to Protect:

  • Ask contractors for proof of liability insurance and workers’ comp.
  • Update your home insurance if you’re adding square footage or new structures.
  • Consider a builder’s risk policy for major renovations.

5. Business Risks During Outdoor Events

Restaurants, vendors, and event organizers often expand operations outdoors in summer. But tents, stages, grills, and crowds increase liability exposure.

How to Protect:

  • Ensure your commercial general liability covers off-site events.
  • Add event liability insurance for one-time functions.
  • Use proper signage, staffing, and crowd control measures.

Don’t Let Summer Surprises Derail Your Season

Accidents can’t always be prevented but the right insurance helps you recover faster, with less stress and fewer financial headaches. Whether it’s your home, car, boat, or business, we’re here to help you protect what matters.

Are Settlements and Jury Awards Increasing Against Homeowners?

Posted under Uncategorized.

Q: Are settlements and jury awards increasing against homeowners in 2025?

A: Yes—and every homeowner should be aware of it.

Over the past few years, we’ve seen a notable rise in the number and size of liability claims filed against homeowners. From dog bites and slip-and-falls to social media lawsuits and property damage, the legal landscape is changing, and homeowners are increasingly finding themselves in the crosshairs.

Let’s break down what’s happening and what you can do to protect yourself.

Why Are Jury Awards Getting Bigger?

More Lawsuits:

It’s become easier and more common for individuals to pursue legal action. Attorneys are more aggressive, and many operate on a contingency fee basis—meaning no upfront cost to sue.

Social Inflation:

This industry term refers to the growing trend of larger jury awards and settlements, driven by changing public attitudes and expectations. People today are more likely to award higher damages, especially for pain and suffering.

Medical Costs Are Rising:

When someone is injured on your property, medical costs and ongoing care can add up fast—and you could be held liable.

More Complex Liability Risks:

Hosting a party, hiring a contractor, even what your kids post online can lead to claims. Liability isn’t just physical anymore—it’s digital too.

What Can Homeowners Do to Protect Themselves?

1. Maintain Sufficient Liability Coverage

Standard home insurance policies typically include $100,000 to $300,000 in liability coverage—but that may no longer be enough. A severe injury claim or lawsuit could easily exceed that.

2. Add a Personal Umbrella Policy

An umbrella policy provides extra liability coverage—typically starting at $1 million—and kicks in when your homeowners policy maxes out. It’s surprisingly affordable for the protection it provides.

3. Understand Your Exposures

We help our clients review risk areas they may overlook, like rental properties, pool safety, trampolines, pets, and teen drivers.

4. Keep Records and Stay Proactive

Keeping walkways clear, maintaining your property, and documenting safety efforts can reduce your risk and help defend you if a claim arises.

The Bottom Line

Settlements and jury awards are increasing—and so is your potential financial exposure as a homeowner. The good news? You don’t have to face that risk alone.

We help you review your liability coverage, explore umbrella protection, and create a smart insurance plan that keeps you protected in today’s legal environment.

Let’s talk about how to shield your assets and your future. Contact us today for a free coverage review.

Understanding Personal Insurance

Posted under Uncategorized.

A Q&A with a Local Insurance Agent

Personal insurance plays a vital role in protecting your home, car, and financial future. We sat down with a local insurance agent to ask the most common questions people have about personal insurance and got straightforward, helpful answers.

Q1: What is personal insurance, and why do I need it?

Agent: Personal insurance covers your individual assets and liabilities. This includes your home, vehicles, valuables, and protection against lawsuits or accidents. Life is unpredictable—personal insurance gives you financial security and peace of mind when unexpected events happen.

Q2: What’s the difference between home insurance and renters insurance?

Agent: Home insurance is for property owners and protects the structure, personal belongings, and liability. Renters insurance doesn’t cover the building, but it protects your possessions inside and offers liability coverage. Both are essential depending on your living situation.

Q3: How much auto insurance do I really need?

Agent: At a minimum, you need to meet your state’s legal requirements. But we often recommend higher limits, especially liability coverage, to protect your assets if you’re at fault in a serious accident. Coverage like comprehensive and collision helps pay for damage to your own vehicle, too.

Q4: What’s a personal umbrella policy, and who should get one?

Agent: A personal umbrella policy offers extra liability protection on top of your home and auto policies. If you’re sued for a large amount, it kicks in after your standard policy limits are exhausted. It’s ideal for people with assets to protect, kids driving, pets, or frequent visitors at home.

Q5: How often should I review or update my policies?

Agent: At least once a year—or anytime you have a major life change like buying a home, getting married, having a child, or buying a new vehicle. An annual review helps make sure you’re properly covered and not overpaying.

Q6: Does my homeowners insurance cover flooding or earthquakes?

Agent: No, standard homeowners policies usually exclude flood and earthquake damage. These require separate policies. If you live in a high-risk area, we can help you explore options for added protection.

Q7: What should I know about insuring valuable items like jewelry or art?

Agent: Most policies have limits on certain categories like jewelry, collectibles, or firearms. If you have high-value items, we recommend scheduling them separately (a “rider”) so they’re fully protected against theft, loss, or damage.

Q8: Can bundling home and auto insurance really save money?

Agent: Yes! Most carriers offer a multi-policy discount when you bundle, and it can simplify your billing and claims. Bundling can save 10% to 25% or more, depending on your provider and policies.

Q9: What factors affect my insurance rates the most?

Agent: For home, it’s things like location, age of the home, and claims history. For auto, it’s your driving record, credit, vehicle type, and even how far you commute. We shop multiple carriers to get you the best combination of price and coverage.

Q10: What’s the biggest mistake people make with personal insurance?

Agent: Underinsuring! Many people choose the cheapest policy without realizing how exposed they are in a serious claim. Our job is to help you understand the risk—and protect what matters most.

Have more questions or need a personal review of your coverage? We’re here to help. Contact us today for a no-obligation consultation.