Property Insurance Roundtable

Difference in Conditions Coverage


This podcast and the corresponding Adjusting Today article titled, “Difference in Conditions Coverage: What It Is and Who Needs It?” is designed to assist any business that needs more protection than supplied by standard property insurance in regards to flood and earthquake perils. Today’s expert panelists answer questions regarding terminology, past and present changes in coverage, and what types of businesses need this type of coverage. This roundtable ends with additional important thoughts and real life examples of DIC policies.

Key Takeaways

  • [01:45] What is the Difference in Conditions (DIC) coverage?
  • [02:36] Why are these policies often misunderstood by policyholders?
  • [03:34] Who or what types of businesses need this type of coverage?
  • [07:19] To which type of disasters, other than flood and earthquake losses, does this coverage apply?
  • [10:21] A coinsurance requirement can have a serious adverse effect on the insured at the time of loss. Why?
  • [11:24] Why is it important to watch for definitions, such as flood and earthquake, if they are defined in your main policy?
  • [16:05] What type of limits do DIC policy limits contain, as compared to AAIS form limits?
  • [20:25] Do commercial insureds who carry business interruption or business income coverage in their main commercial property policy also need to purchase similar coverage in their DIC policy?
  • [21:37] Why the ordinance or loss can be troublesome for policyholders who sustain serious property loss.
  • [24:00] How are subrogation provisions usually written in DIC policies, and what role do they play?
  • [25:08] Are court decisions involving DIC coverage common, and if so, why?
  • [27:03] What is a Builder’s Risk DIC policy?
  • [30:00] Why are there no standard DIC policies available?
  • [31:34] How has DIC coverage changed in past 10 years?
  • [33:29] Do you see big changes on the horizon for DIC coverage?
  • [34:53] Additional roundtable thoughts on DIC policies.


Scott deLuise has been a licensed public adjuster representing policyholders exclusively for thirty years, acting as lead adjuster and manager for public adjusting teams on large, complex losses all over the country. He organized the first Adjusters International/FEMA loss consulting engagement after Hurricane Andrew in 1992 and has been involved in disaster recovery consulting since that time. Scott is also a commercial real estate broker and developer since 1975. Scott’s nationwide reputation and contacts in the commercial insurance and real estate marketplaces makes him an extremely valuable trusted advisor to real estate owners, syndicators, and Real Estate Investment Trust advisors.

Scott has represented hundreds of clients across the US, in Mexico and Canada, including City of Wichita, KS, Wichita Airport Authority, Denver Housing Authority, Colorado housing Finance Authority, Bowling Green, KY Airport Authority, Grand Island, NE Airport Authority, Da-Lite Screen Company, (Warsaw, IN), Volunteers of America Colorado, Phil Long Ford Colorado, Jensen Aero Colorado, Mayo Aviation Colorado, Peak National Bank (Lakewood, CO), Vail Run Resort, Vail Spa Condominiums, Chambertin Vail Condominiums, McCoy Peak Vail, Aspen