A Difference in conditions or DIC insurance policy provides expanded coverage for particular perils that may not be covered under your standard insurance policy. Difference in conditions coverage fills gaps in your insurance policy. Difference in conditions insurance is commonly used by larger organizations that may need to be covered for catastrophic perils.
Difference In Conditions (DIC) Insurance
Difference in conditions insurance is designed to broaden your insurance coverage by providing additional limits for particular perils that your regular insurance policy will not cover. Typically your insurance company will cover you for specific perils stated in your policy.
When it comes to more severe perils your insurance company may be less willing cover them under a standard policy. It may also be slightly more difficult for them to calculate an insurance premium if the particular event is infrequent. This is why most regular insurance coverage will protect you from higher frequency, lower severity perils.
One of the main reasons difference in conditions insurance is so valuable is it’s designed to cover severe loss. For example floods, earthquakes, and the major catastrophes. Usually used as a gap filler, difference in conditions insurance will protect you with insurance coverage that is broader, that the typical insurance market will not offer coverage for.
Difference in conditions insurance will go beyond providing additional limits to your insurance coverage. This is because your typical insurance policy will only cover you for specific perils. When it comes to earthquakes and floods, they are usually covered by purchasing additional coverage for those specific perils. Earthquake insurance and Flood insurance.
Typically you would purchase this insurance in addition to your standard insurance policy. Although, some standard insurance policies may allow you to purchase a policy endorsement which may be what you need. It’s always best to speak to an insurance agent, and ask what is best for your situation. We just so happen to have amazing agents standing by to answer your questions. Please give us a call today at 916 313 6100.
When determining whether or not difference in conditions insurance is right for you. One of the agents at Eugene C Yates Insurance Agency will walk you through your options so you can clearly see all the pros and cons ahead of you.
Whats covered under a difference in conditions policy
- Earthquakes – Standard homeowners insurance doesn’t cover earth movement, including damage directly caused by earthquakes. Many surplus carriers cover direct earthquake loss in DIC policies
- Flooding – Homeowners insurance covers internal water damage after a burst pipe or explosion, but won’t cover property loss as a result of flooding. Flood protection is a common inclusion in DIC policies
- Mudslides – Homeowners insurance doesn’t cover mudslides, and it’s also possible your flood insurance policy doesn’t either. If you live in an area at risk of mudslides, like at the bottom of a slope or canyon, consider mudslide coverage via a difference in conditions policy
- Landslides – Landslides are typically excluded by both home insurance and earthquake insurance, so homeowners in landslide hazard areas should consider a DIC policy with landslide coverage
Difference in conditions insurance and California FAIR Plan insurance
There are many homeowners in California that are finding it difficult to find home insurance. Some major insurance carriers just aren’t offering coverage in high risk areas. This has become very typical in high brush areas like El Dorado Hills, Folsom, and Granite Bay. The California FAIR Plan can help.
If you would like more information or to see if you qualify for the difference in conditions policy, please give us a call. We can be reached at 916 313 6100