Glossary

Difference in conditions (DIC)

A stand-alone property policy that fills gaps in a primary policy, usually adding flood, earthquake and broader terms, often from surplus lines insurers.

Also called: DIC, DIC policy, difference in conditions policy, DIC coverage

A difference in conditions policy sits beside a primary property policy and covers what the primary excludes or limits. The classic DIC is written on an open-perils basis and adds the perils a standard commercial property form leaves out, chiefly flood and earthquake, sometimes on better terms than the primary on the perils it does cover. Insurers that write it are often surplus lines carriers, so it may come through a wholesale broker.

Expect high deductibles, often stated as a percentage of values at the affected location. CRC Group's 2026 market report, reported by Artemis in April 2026, put earthquake deductibles at about 5% in California, 3% in the Pacific Northwest and 2% in the New Madrid zone.

The pitfall is the seam. A loss that straddles both policies, such as wind and rising water from the same storm, invites a dispute over which policy pays, driven by each policy's exclusions, its other insurance clause and the concurrent causation rules. Have your broker map the two forms against each other before you buy, and make sure the limits and deductibles do not leave a hole between them.

Difference in conditions (DIC) policies: what they cover and when to buy explains the structure in depth, Commercial flood insurance: NFIP limits and private options covers the flood piece, and concurrent causation explains why the seam matters.

Last reviewed October 10, 2026

In the index now

Related terms

Special form (open perils) A property causes-of-loss form covering direct physical loss from any cause not specifically excluded or limited, rather than only the perils it lists. Named perils Property coverage that pays only for losses caused by perils the policy lists, such as fire, lightning and windstorm; an unlisted cause is not covered. Sublimit A lower cap on what a policy pays for one coverage, peril or item, set beneath the policy's overall limit. Excess and surplus lines Insurance placed with non-admitted insurers for risks the standard market declines or cannot price, with freer forms and rates but less regulatory protection.

Related guides

California's commercial property and wildfire market California commercial property after the 2025 LA fires: FAIR Plan limits to $20 million, surplus lines, wildfire discounts and the 2026 nonrenewal moratorium. Earthquake insurance for businesses: coverage, deductibles, limits Commercial property policies exclude earthquake. How the endorsement or DIC policy works, why deductibles run 2% to 5% of values, and what underwriters ask for. Commercial flood insurance: NFIP limits and private options Commercial property policies exclude flood. How NFIP coverage works for businesses, its $500,000 limits and gaps, lender rules, and what private flood adds. D&O Sides A, B and C explained Side A covers directors personally, Side B reimburses the company for indemnifying them, Side C covers the entity. How each part pays, with a worked example. Difference in conditions (DIC) policies: what they cover and when to buy A DIC policy sits beside your property cover and adds flood, earthquake and other excluded perils, usually from surplus lines insurers with big deductibles. India's 100% FDI in insurance: what it means for global insurers India lifted its foreign investment cap in insurers from 74% to 100%. Enactment, notification status as of October 2026, remaining conditions and early deals.

Related insurers

ICW Group Privately held San Diego insurer known for workers' comp in 22 states and commercial earthquake cover, now adding E&S excess and California commercial lines. Palomar La Jolla specialty insurer known for earthquake and DIC property, now growing in contractor casualty, inland marine, surety, crop and fronting. RLI Peoria, Illinois specialty insurer writing E&S and niche admitted casualty, property, trucking and surety through brokers and agents; rated A++ by AM Best.