Issue #3042
Difference in Conditions Coverage

Difference in Conditions Coverage: What Is It and Who Needs It?

Difference in Conditions Coverage: who needs it? Any business that needs more protection than that provided by standard property insurance, especially with regard to the flood and earthquake perils.

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.