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Difference in Conditions Insurance
A Difference in Conditions policy, often called a DIC or a wrap-around policy, fills the gaps that a California FAIR Plan policy leaves open. The FAIR Plan covers basic fire. A DIC policy covers most of the rest. Put the two together and you get protection that works much like a standard homeowners policy. Peterson & Grantham places both, and we line them up so you are not left with holes in your coverage.
Why a DIC Policy Exists
The California FAIR Plan is a safety net for homeowners who cannot get coverage on the normal market. But it was built to cover fire, not everything. On its own, the FAIR Plan leaves out liability, theft, water damage, falling objects, and more. A homeowner with only a FAIR Plan policy is protected against fire and little else. The DIC policy was created to close that gap.
What a Difference in Conditions Policy Covers
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A DIC policy adds the coverages the FAIR Plan does not include. That usually means liability if someone is hurt on your property, theft, water damage, and other everyday risks, plus additional living expenses if you cannot stay in your home after a covered loss. The exact coverage depends on the policy, and we walk you through the details before you buy. The goal is simple: your FAIR Plan handles fire, your DIC handles the rest, and together they cover your home the way a standard policy would.
How We Pair the FAIR Plan and a DIC Policy
This is work that few local agents do well, and it is a core part of what we do. First, we shop the standard market, because a normal policy is almost always the better deal. If your home cannot be placed there, we set up your California FAIR Plan fire policy and match it with the right DIC policy. We check that the two line up with no gaps, handle the paperwork, and review everything at renewal. When the standard market opens back up for your home, we help you move back to it.
How DIC Differs from Traditional Policies
| Feature | Standard Property Policy | DIC Policy |
|---|---|---|
| Covered Perils | Fire, theft, vandalism | Earthquake, flood, landslide |
| Policy Structure | ISO-standardized | Non-standard, highly customized |
| Purpose | Basic property protection | Fill gaps in existing coverage |
| Premiums | Generally lower | Higher due to broader coverage |
Who Needs a DIC Policy
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If you are on the FAIR Plan, or about to be, you almost certainly need a DIC policy to go with it. This is common for homeowners who received a non-renewal notice, who live in a higher wildfire risk area, or whose home has been turned down by standard carriers. If your home falls into any of these groups, call us and we will build the full stack for you.
Frequently Asked Questions
What is a Difference in Conditions policy?
A Difference in Conditions policy, or DIC, is a wrap-around policy that fills the gaps left by a California FAIR Plan policy. It adds coverage for things the FAIR Plan does not include, like liability, theft, and water damage. Paired with a FAIR Plan fire policy, it creates protection that works much like a standard homeowners policy.
Do I need a DIC policy if I have the FAIR Plan?
For most homeowners, yes. The FAIR Plan covers basic fire but leaves out liability, theft, water damage, and more. A DIC policy adds those coverages. If you have a mortgage, your lender may also expect this broader protection.
What does a DIC policy cover that the FAIR Plan does not?
A DIC policy typically covers liability, theft, water damage, falling objects, and additional living expenses, along with other everyday risks. The FAIR Plan focuses on fire, smoke, lightning, and internal explosion. The DIC handles the rest.
Can Peterson & Grantham set up both policies for me?
Yes. We place the FAIR Plan fire policy and the DIC wrap-around policy together, line them up so there are no gaps, and manage both at renewal. Call us at (916) 431-0400 to start.
CTA
Do not settle for fire-only coverage. If you are on the California FAIR Plan, a Difference in Conditions policy completes your protection. Call Peterson & Grantham at (916) 431-0400 or request a quote. We place both policies and make sure they fit together.
Final Thoughts
- Review Your Current Policy: Identify exclusions that could leave you exposed.
- Consult an Insurance Advisor: DIC policies are complex and require expert guidance.
- Consider Your Location: If you’re in California, for example, earthquake coverage is a must—and DIC is often the best way to get it.
If you are not sure if you have the correct homeowners insurance, give us a call. Let’s make sure you have the right insurance in place first! P&G in Roseville is here to help. Contact us today by clicking HERE. Follow us on Facebook for news updates and specials.