What is a DIC (wraparound) policy?

A Difference in Conditions (DIC) policy (commonly referred to as a wraparound policy) is a supplemental insurance product designed to cover critical gaps like personal liability, theft, and water damage that may be excluded from primary last-resort FAIR Plans.

Why Do You Need a Wraparound Policy?

State established last-resort insurance plans are generally designed to cover catastrophic property damage such as fire, lightning, and internal explosions. They are for the most part, bare-bones policies. They rarely behave like a standard HO-3 home insurance policy. Unless layered with policies to address coverage gaps, they can leave homeowners completely exposed to everyday liabilities and losses.

FAIR Plan vs. DIC Coverage Gaps

A DIC (Difference in Conditions) policy acts as a companion plan. When layered on top of your last-resort policy, it effectively locks together to mimic a comprehensive traditional policy. Without a DIC policy, consumers can find themselves completely uncovered for major financial liabilities.

• Personal Liability Protection: Covers medical bills or legal defenses if someone is injured on your property.
• Theft & Vandalism: Last-resort policies typically pay $0 if your home is broken into or burglarized.
• Water Damage & Broken Pipes: Sudden and accidental plumbing discharge is excluded by basic state plans but normally wrapped back into standard-market tiers via DIC.
• Other Structures & Loss of Use: Expanded coverage limits for detached garages, sheds, or temporary living relocation costs.

How Do You Purchase a DIC Policy?

You cannot purchase a DIC policy as a standalone product without an active underlying primary policy; a FAIR Plan policy or other last-resort insurance policy. Connect with a licensed agent who can review whether a DIC wraparound fits your situation.