Difference in Conditions Coverage: What Is It and Who Needs It?
“We” cover the following property unless the property is excluded or subject to limitations.
1. Coverage — “We” cover direct physical loss to covered building property and business personal property (as described below) caused by a covered peril.
2. Coverage Limitation — “We” only cover building property and business personal property at “covered locations.”
3. Building Property — Covered building property means buildings and structures including:
a. completed additions;
b. fixtures, machinery, and equipment that are a permanent part of a covered building or structure;
c. outdoor fixtures;
d. personal property owned by “you” and used to maintain or service a covered building or structure or its premises. This includes air-conditioning equipment; fire extinguishing apparatus; floor coverings; and appliances for refrigerating, cooking, dishwashing, and laundering;
e. if not covered by other insurance:
1) buildings and additions to buildings under construction, alteration, and repair;
2) materials, equipment, supplies, and temporary structures, on or within 1,000 feet of “covered locations,” used for the construction, alteration, and repair of buildings or additions to buildings;
“A DIC policy will be purchased when an insured has a significant flood or earthquake exposure and the commercial property insurer does not offer flood and earthquake coverage, cannot provide full limits for these perils, or offers this coverage at premiums that are prohibitive from the insured’s standpoint.”