Difference In Conditions Insurance

Updated: 29 February 2024

What Does Difference In Conditions Insurance Mean?

Difference in conditions (DIC) insurance provides coverage for perils that may be outside the normal scope of risk for a particular asset. People purchase DIC insurance because insurance companies will often only provide coverage for risks that are relatively common. This can result in some people feeling too exposed to rare or less common risks.

Insuranceopedia Explains Difference In Conditions Insurance

Rather than be exposed to less common risks, insurance policy holders may choose to purchase DIC insurance. Those who live in major cities might, for example, purchase DIC insurance that covers acts of terrorism, while those who have houses in flood zones might purchase it to cover flood damage.

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