Difference in Conditions (DIC) Insurance
Difference in conditions (DIC) insurance fills the catastrophe gaps a standard property policy leaves out, most often earthquake and flood in California. It also turns a bare California FAIR Plan fire policy into more complete protection by adding coverages such as liability, theft, and water damage. What it includes may vary by policy.
What a DIC policy is for
A difference-in-conditions policy fills the gaps a standard property policy leaves behind. In California that usually means the big excluded catastrophe perils, earthquake and flood, and it is also the policy that turns a bare-bones California FAIR Plan fire policy into more complete protection.
What does DIC insurance cover?
- Earthquake, when it is not covered on your primary policy.
- Flood, as an alternative or supplement to the National Flood Insurance Program.
- Other excluded perils depending on the form, for example certain water damage, mudflow, or landslide, subject to terms.
- For FAIR Plan policyholders: the coverages the FAIR Plan does not include, such as liability, theft, and water damage.
Who needs a DIC policy?
Homeowners whose only fire option is the California FAIR Plan and who need the rest of a homeowners policy’s protection; owners who want earthquake or flood coverage structured through a DIC form; and commercial and habitational property owners closing catastrophe gaps.
A note on our role
The California FAIR Plan Association is an association of California-licensed property insurers, not a state agency, and Schneiderman Insurance Agency is not affiliated with or appointed by it. When we help you obtain a FAIR Plan policy, we act as your insurance broker and represent you, not the FAIR Plan. California’s defining property risks, wildfire, earthquake, and flood, are exactly the perils standard policies limit or exclude, which is why DIC is such a common tool here.
How we help
We help you assess your property’s catastrophe exposure, explain how a DIC form pairs with your primary policy or a California FAIR Plan fire policy, and coordinate the pieces so the coverages line up without gaps.
