Specialty · Insurance Term
Difference in Conditions (DIC)
Definition
Difference in conditions (DIC) insurance is a separate policy that fills gaps in your main property policy, most often by adding flood or earthquake coverage the main policy excludes. It can also add higher limits or broader terms where the main policy falls short.
In Plain English
A DIC policy sits alongside your main property policy and covers what that policy doesn't. Typical uses are earthquake coverage and flood insurance above or in place of federal flood limits. It usually excludes perils the main policy already covers, such as fire, to avoid overlap.
DIC is often written in the surplus lines market, with its own deductibles, sublimits and exclusions. Larger owners and portfolios use it most, since they need high catastrophe limits across many locations.
A related tool is a deductible buy-down, which pays part of a large deductible instead of adding new perils. Some insurers offer both in one policy.
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Example
Hypothetical and simplified: An owner of a $15 million office building near a bayou buys a federal flood policy with a $500,000 building limit. A DIC policy adds $5 million of flood coverage above that, subject to its own deductible and terms.
Why It Matters for Texas Property Owners
In Houston and other flood-prone parts of Texas, DIC policies are one way larger owners buy flood limits above the NFIP's $500,000 maximum building limit for non-residential buildings.
What to Watch For
- Check that the DIC and main policy don't leave gaps between their deductibles and limits.
- Read the DIC's sublimits closely, since flood and earthquake often have separate, lower limits.
- Confirm which locations are included if you own several properties.
- Compare DIC with stand-alone excess flood or earthquake options.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write