A difference in conditions policy (DIC) provides additional and complementary protection. It is commonly used in property assurance and focuses on covering risks that are not included or are limited in the standard insurance policy.
For example, it may provide customized coverage for events such as earthquakes, floods, water damage, acts of terrorism, or any other peril.
Difference in conditions insurance is often utilized in conjunction with the California FAIR Plan Association to give comprehensive protection. They are used to fill gaps and provide a broader and more comprehensive level of security.
It is important to note that it does not replace the primary policy but acts as an additional layer of insurance coverage.
At PSIC, you can enhance your standard insurance policy by incorporating a difference in conditions. This is a customized coverage that provides you with extra protection.
This endorsement must be signed and attached to the Homeowners, Condo, or Mobile home application. It is important to highlight that there are risks that will not be covered because they should already be included in your FAIR plan. These are: fire and lightning, wind and hail, explosion, riot and civil commotion, vandalism and malicious mischief, aircraft, smoke.
These terms might be similar or associated with the term you have read before.
At PSIC, we consider that they can be helpful for you.
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Last updated: June 27, 2023
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