Coverage & Claims
Difference in Conditions (DIC) Policy
A supplemental policy that fills the coverage gap a narrower primary policy leaves — most commonly paired with the California FAIR Plan.
A Difference in Conditions (DIC) policy is a supplemental policy written to cover perils or coverage types a narrower primary policy excludes. It's most often discussed alongside a fire-only policy like the California FAIR Plan: the DIC wrap adds back liability, theft, water damage, and other coverage a standard homeowners policy includes but the FAIR Plan doesn't.
Why it matters
- Budgeting only the primary (e.g., FAIR Plan) premium and skipping the DIC cost understates the real, total cost to insure the property.
- A DIC policy is a separate contract from a separate carrier — it has its own underwriting, its own price, and its own renewal cycle to track.
Where this shows up
Related terms
California FAIR Plan
California's state-mandated insurer of last resort — a fire-only policy for homes the admitted market has declined or non-renewed.
Special Flood Hazard Area (SFHA)
A FEMA-mapped zone with a 1%+ annual chance of flooding — the trigger for a lender's mandatory flood-insurance requirement.
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