Who Should Get Difference in Conditions Insurance?

Anyone who lives in an area subject to a high rate of natural disasters and perils, such as a coastal region with frequent hurricane activity, an earthquake zone, a flood plain, or a high-risk area for wildfires and tornadoes, should consider Difference in Conditions insurance coverage.

This policy also comes in handy if there is an insurance gap between what a standard home insurer will pay for damage and the cost of rebuilding or repairing the damaged property. With this insurance, you can avoid paying for a typical coverage and then experiencing financial losses if the cost of damage exceeds what the policy covers.

However, if your home or office space is not situated in a disaster-prone area, you don’t need to take out DIC insurance. A standard home insurance policy will suffice.

Augment Your Home Insurance with This Coverage

You can purchase difference in conditions insurance as a standalone or add-on to existing coverage. An excellent case in point is a home insurance policy that doesn’t cover floods. If your property nestles in a flood zone, you will need DIC coverage to create an additional layer of protection against damage. This will be your primary insurance.

However, if you already have limited coverage for a specific disaster, you can get a DIC policy as excess insurance, which will take effect once your base coverage has been used up. DIC insurance is more comprehensive than regular home insurance and can be tailored to meet your unique needs, regardless of where you live.

Risks Difference in Conditions (DIC) Covers

A DIC policy can offer protection against a wide range of risks, including:

Landslides

A landslide can cause extensive damage to your home and property. It also makes the structure prone to floods and mudflows. With the difference in conditions insurance, you will get coverage for repair costs related to this risk.

Mudslides

Some areas have very loose soil that leads to mudslides. If your property is in such an area, you should consider taking out this coverage as flood or home insurance might not cover the risk of a mudslide.

Flooding

Flooding can easily occur on your property because of water runoff from other properties or from rivers, creeks or other bodies of water. When it rains heavily, the excess water flow can bring in mud, sand, and debris to your property and cause significant damage.

The cost of cleaning up the mess and renovating your home in the aftermath can be high, so it’s a good idea to invest in a DIC policy.

Theft

Losing all your household items to theft is very devastating. If your property is in a high-crime area or if you are in an area prone to theft, the difference in conditions policy can help you recover from such losses.

Vandalism

If your property is prone to vandalism, the insurance will assist you in recovering damages for the loss of your pricey furnishings, appliances, and other possessions.

Home Insurance Vs Difference in Conditions Insurance

Home insurance and difference in conditions insurance are very similar, yet different in certain respects. They are both designed to protect you and your family from a disaster or other loss. In the event of loss or damage, you will get coverage for the replacement value of your property. DIC insurance adds additional coverage for living expenses and extra charges that may arise after a disaster.

What Plan to Get If Your California Home is in a Fire-Prone Location

The California FAIR Plan is a special insurance program that is designed to provide coverage for property owners who live in high fire-risk areas. The plan is offered by the California Department of Insurance and is available to homeowners, renters, and business owners. It protects your property against loss and damage related to wildfires, hail, wind, volcanic eruptions, explosions, and vandalism, to name a few.

In contrast, it doesn’t insure your home against water damage resulting from liability, faulty plumbing, and theft. Given this reason, you need to fill the coverage gap by buying a DIC policy. That way, you enjoy well-rounded protection on your property.

For more information on difference in conditions coverage and additional options available to homeowners, contact us today and our team of licensed and dedicated insurance agents will attend to you.