Difference in Conditions (DIC)
Difference in conditions insurance provides expanded coverage for some perils which does not cover by standard insurance policies. Moreover, it is made to fill in gaps in coverage and is most frequently used by larger organizations. In which they look for protection from catastrophic perils. For this reason, the difference in conditions insurance covers flood, earthquake and perhaps a few other perils that are not part of standard commercial property policies. It usually refers to as DIC coverage. This coverage is purchasable in addition to commercial property policy. It intends to supplement, but not replace, standard commercial property insurance.
Do you need a Difference in Conditions Insurance?
The difference in Condition can be very useful if you know what it covers. First, you must do a research about the perils that DIC covers. Typically, DIC covers earthquakes and floods.
DIC insurance provides coverage for perils that can result in severe losses, such as floods, earthquakes, and other catastrophes. As a gap-filler form of insurance, DIC insurance is made to provide coverage that the broader insurance market won’t provide. Moreover, this type of coverage goes beyond the purchase of additional coverage limits since standard coverage typically excludes certain perils. Furthermore, the insured purchases this coverage in addition to a standard insurance policy. Though some standard policies allow the purchase of a policy endorsement that may provide for much of the same needs.
Determining if you really need DIC
To determine if you need DIC insurance, the best course of action is to review your situation with your agent or broker, who will look at your current policy levels and determine whether they are satisfactory for your insurance needs. Nonetheless, DIC insurance isn’t like auto insurance, where everyone needs to have it. DIC policies are fluid, with the ability to change them and to tailor-make them. If, for example, you need more coverage for property out in the open, for spoilage, for flood or earthquake, than your primary carrier is able to cover, then DIC might be an answer.