Key Points Page
- Difference in Conditions Coverage1
- No Standard Form3
- Policy Approach3
- Property Covered4
- Policy Wording of Covered Perils and Exclusions6
- Limits of Insurance6
- Joint/Disputed Loss Agreement6
- Valuation Clause8
- Business Interuption8
- Ordinance or Law Exclusion8
- Subrogation Provisions9
- Court Decisions Involving DIC Coverage9
- Builders Risk DIC Policy11
Difference in Conditions Coverage: What Is It and Who Needs It?
In this issue, industry expert Robert Prahl, CPCU, explains the key components of Difference in Conditions (DIC) coverage. Here he enlightens the reader on what’s covered, where it can be most useful, who needs it and how a policy is structured.
“A DIC policy will be purchased when an insured has a significant flood or earthquake exposure and the commercial property insurer does not offer flood and earthquake coverage, cannot provide full limits for these perils, or offers this coverage at premiums that are prohibitive from the insured’s standpoint,” said Prahl.
And since there isn’t a standard DIC policy, whenever such a policy is in play, it must be reviewed carefully.