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Difference in Conditions (DIC) Insurance

Checked against official sources · Last reviewed October 13, 2026

Why a FAIR Plan policy needs a DIC policy

The California FAIR Plan is the state's insurer of last resort. Its Dwelling Fire Policy "is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy":

• Fire and lightning
• Internal explosion
• Smoke

Vandalism and malicious mischief coverage is an option "at an additional cost." The California Department of Insurance (CDI) says that because FAIR Plan coverage "is limited to losses caused by Fire or Lightning, Internal Explosion and Smoke, it is recommended that you supplement the FAIR Plan policy with a Difference in Conditions policy to obtain protection from other perils not covered under the FAIR Plan policy."

The FAIR Plan's maximum on a home is $3,000,000 "for all coverages combined" (CDI). [2][5][6]

What a DIC (wrap-around) policy adds

The FAIR Plan describes DIC policies this way: they "provide coverages that are not available through the California FAIR Plan, such as water damage, theft and liability coverage. They are designed to combine with a California FAIR Plan policy to provide coverage similar to that in a comprehensive homeowner's policy."

CDI's FAIR Plan page names "water damage, liability, theft, additional living expenses, and other common coverages" as what people buy a separate DIC policy for. A 2023 California Assembly Insurance Committee paper called it "wraparound coverage that, coupled with a FAIR Plan policy, results in the same protection provided by a standard homeowner's policy."

CDI describes the goal as "the same or similar coverage" as a traditional homeowners policy, so exactly what a DIC policy covers depends on the policy you buy. Check its coverages, limits and deductibles with your broker. [1][3][4][7]

How to find a DIC policy

The FAIR Plan doesn't sell them. "The California FAIR Plan does not offer DIC policies. For more information, learn more here or contact your broker." Its "learn more" link goes to CDI's list.

CDI's list of DIC insurers. CDI publishes a List of Insurers that Sell Difference in Conditions (DIC) Policies with phone numbers and websites; it had 18 insurers when we checked on Oct. 13, 2026. CDI says these insurers "offer a DIC product that complements a FAIR Plan policy so that the consumer (who buys both) has the same or similar coverage as a traditional homeowners' (HO) policy." We don't rank or recommend any of them.

Your broker. The FAIR Plan says that if you and your broker can't get a policy from another company, "your broker can help you find a Difference in Conditions policy which offers additional coverages to provide the equivalent of comprehensive homeowners insurance." Not every broker works with the FAIR Plan: "Not all brokers are registered to work with the California FAIR Plan." The FAIR Plan's website links its "Find a Broker" button to CDI's Home Insurance Finder, which lists agents and brokers and the insurers they represent. The FAIR Plan says "There is no additional cost for having an insurance broker."

Questions about coverage or a company: CDI's consumer line, 1-800-927-4357. [1][2][4][5][6][7]

Admitted or surplus lines? Check before you buy

Ask whether the insurer offering your DIC policy is licensed ("admitted") in California or is a non-admitted ("surplus lines") insurer. The difference matters if the insurer ever fails.

If it is non-admitted, California law requires you to sign a notice, in bold 16-point type, that says the insurer "is not licensed by the State of California" and "does not participate in any of the insurance guarantee funds created by California law. Therefore, these funds will not pay your claims or protect your assets if the insurer becomes insolvent." You can look up a company in CDI's Company Profile search and CDI's List of Approved Surplus Line Insurers.

Our surplus lines insurance guide explains the differences and how to check an insurer. [6][8][9][10][11]

Alternatives to the California FAIR Plan

CDI's "Top Ten Tips for Finding Residential Insurance" sets out what to try, roughly in this order:

1. If you get a nonrenewal notice, ask your insurer whether specific actions to reduce your risk would let you keep your coverage, and file a complaint with CDI if you think the nonrenewal was unfair.
2. Shop admitted insurers: local agents and brokers, CDI's Residential Insurance Company Contact List ("toll free numbers for over 50 insurers that are licensed to sell homeowners insurance"), and CDI's premium and coverage comparison tools.
3. If your agent can only offer the FAIR Plan, contact other agents and brokers who represent other insurers; CDI's Home Insurance Finder shows "which insurers they represent."
4. The FAIR Plan, "available to every homeowner as a last option for coverage," plus a DIC policy.
5. "If none of these options work for you, you may try obtaining coverage in the non-admitted/surplus lines market."

CDI's FAIR Plan page (undated) also says a "comprehensive residential policy option" from the FAIR Plan "is currently in progress"; when it is finished, policyholders "will be able to obtain coverage for water damage, liability, theft, additional living expenses, and other common coverages without having to purchase a separate Difference in Conditions policy." As of Oct. 13, 2026, the FAIR Plan's own website lists Dwelling, Difference in Conditions (an information page), Commercial and Earthquake under its policies, and still says it does not offer DIC policies. For California's market and rules, see our California page. [1][5][6][7]

Earthquake and flood are separate too

The FAIR Plan suggests "Difference in Conditions, Flood, or Earthquake policies to supplement your California FAIR Plan policy by covering additional perils." It offers earthquake coverage for homes "through the California Earthquake Authority (CEA)." For flood insurance, see our sister site FloodHawk. [2][5]

Questions people ask