Difference In Conditions Insurance

What Does Difference In Conditions Insurance Mean?

Difference in Conditions (DIC) insurance offers coverage for perils that may fall outside the normal scope of risk for a particular asset. Individuals purchase DIC insurance because standard insurance policies often cover only more common risks. As a result, some people may feel overly exposed to rare or less common risks that are not adequately addressed by their primary insurance coverage. Standard homeowners policies, for example, leave out several common perils, and knowing which areas are not protected by most homeowners insurance can help you decide whether a DIC policy is worth the added cost.

Insuranceopedia Explains Difference In Conditions Insurance

To avoid exposure to less common risks, insurance policyholders may opt to purchase Difference in Conditions (DIC) insurance. For instance, residents of major cities might buy DIC insurance to cover acts of terrorism, while homeowners in flood-prone areas may seek this coverage specifically for flood damage. Because most homeowners policies exclude water damage from rising water, a separate flood insurance policy or a DIC endorsement is typically the only way to close that gap.