What Is a Difference in Conditions Policy?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
A Difference in Conditions, or DIC, policy may provide specified coverage not included in the accompanying FAIR Plan policy. The two policies must be reviewed together.
What might a DIC policy address?
Depending on the actual contract:
- Liability
- Theft
- Water damage
- Loss of use
- Personal property
- Other common homeowners risks
- Additional endorsements
Can gaps or overlaps occur?
Yes. Separate policies can contain different definitions, deductibles, limits, exclusions, claim procedures, effective dates, insured names, and mortgagee provisions. A DIC policy is not universal or standardized; its coverage comes from its actual wording.
Frequently Asked Questions
Does the DIC policy cover wildfire?
Do not assume so. The FAIR Plan and DIC policies divide coverage according to their actual wording.
Will the lender accept the package?
The lender must review it.
Is the combined premium the only issue?
No. Compare coverage, deductibles, exclusions, claim coordination, and limits.
Educational information
A policy nickname does not determine actual coverage.
Request a written explanation of how the FAIR Plan and DIC policies work together.
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A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.
A note on these wildfire-risk and fire-insurance guides: These articles provide general, educational information about California wildfire hazard, fire insurance, defensible space, and home hardening for buyers and sellers. They are not a fire-science report, an inspection, an appraisal, an insurance policy, a quote, a coverage determination, or a guarantee that any property can be insured, that a carrier will renew, or that any home or mitigation measure is safe or fireproof. A Fire Hazard Severity Zone describes broader physical conditions; it does not predict that a particular home will burn, and hazard is different from the individualized risk posed to a specific structure. No article quotes a premium, discount, policy limit, or regulatory deadline, and none describes a real estate professional as a firefighter, insurance agent, fire scientist, building inspector, or wildfire assessor. Property DNA is only one supporting research service and is never a fire-risk report, NHD report, inspection, appraisal, or insurance determination. Local fire authorities, counties, and cities may enforce rules stricter than state guidance. For a specific property, consult the official state or locally adopted map and current CAL FIRE, California Office of the State Fire Marshal, and California Department of Insurance resources, and direct underwriting and coverage questions to a California-licensed insurance professional.