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.
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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 Alps Aspen (2 losses), The Peaks Telluride, Tebo Development Boulder (numerous losses), Excel Industries (Hesston, KS), Kelly Ryan Equipment Co. (Blair, NE), Co-Line Manufacturing (Lynnville, IA), Trump Organization, Los Angeles.

A licensed instrument rated pilot since 1972, Scott uses his airplane as a tool to better serve his clients throughout the western United States.

Scott has been featured as an expert panelist on Adjusters International’s Property Insurance Roundtable podcast in the episode titled, “Differences in Conditions Coverage.”

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James R. Mahurin
Risk Management Consultant and member of the Society of Risk Management Consultants

Self-employed Risk Management and Insurance consultant providing fee-for-service assistance to the insurance buyer.  Perform risk management studies, independent evaluations of commercial insurance programs, conduct competitive proposal/bid process and self-insurance feasibility studies.  Work experience includes projects in approximately twenty states.  Litigation support and expert witness services to law firms began following the Daubert decision in 1993. This work split is approximately fifty/fifty between plaintiff and defense.  Litigation involvement includes agent custom and practice, flood (including both NFIP and private insurance), property, crime, liability, employee benefits, property leases, Broad Form Property Damage (BFPD), etc.  The BFPD includes both course of construction and construction defects.

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C. Todd Thomas
Vice President of Risk Management

Todd Thomas is the Vice President at Adjusters International (AI) and Tidal Basin (TB). He is also the Chief Consultant and Partner of Adjusters International’s affiliate Sigma Consulting Corp. He has worked in the Management Consulting industry for 23 years. Currently, he works with AI and TB's strategic partners to offer the highest quality Risk Management and Disaster Recovery consulting services possible. Thomas has worked in a management capacity on high-profile FEMA, insurance and construction projects since 1996. Thomas regularly serves as an expert witness and Special Master to courts in the area of finance & insurance.

Thomas’ experience assisting public entities, non-profits and other organizations with risk management and insurance includes but is not limited to broker selection, insurance marketing, total cost of risk, risk identification, risk allocation, underwriting, claims, financial risk management, FEMA obtain & maintain compliance, risk analysis, risk management information systems and enterprise risk management.

He is a Fellow of the American Academy of Financial Management (FAAFM), Member of the American Economic Association, Member of the Association of Certified Chartered Economists, a Fellow of the Risk and Insurance Management Society, Member of the Global Risk and Insurance Management Institute, Caribbean Actuarial Association and Member of the Institute and Faculty of Actuaries. Todd is a Chartered Economist (ChE), Certified Risk Analyst (CRA), Certified Organizational Risk Manager (CORM), RIMS Fellow (RF), Fellow of Risk Management (FRM), Chartered Property & Casualty Underwriter (CPCU), Associate in Risk Management specializing in Public Entities (ARM-P), Master Project Manager (MPM), Accredited Financial Analysis (AFA), Accredited Management Accountant (AMA) and Workers Compensation Claims Law Specialist (WCLS).


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For further information on this topic, please read our Adjusting Today article: “Difference in Conditions Coverage: What Is It and Who Needs It?”