Close the Gap Your Property Policy Left Open.
The policy that fills what your standard coverage won't
Difference in conditions (DIC) insurance broadens a commercial property program by covering the perils and gaps a standard policy excludes. Its name is literal: it insures the "difference" between the narrower coverage your base property policy provides and a broader, closer-to-all-risk form. Most often that difference is catastrophe exposure — earthquake and flood — but DIC can also widen a restrictive named-peril policy, respond where a packaged property form falls short, and bring multiple gaps under one coordinated layer.
For businesses whose property program has hard edges, DIC turns a patchwork of exclusions into a single, intentional solution.
What Difference in Conditions Covers
DIC programs are flexible, but typically address:
Earthquake & Earth Movement — Catastrophe cover for shock damage the base property policy excludes — see our dedicated earthquake page for the specific peril.
Flood & Surface Water — Flood damage outside what a standard policy provides, coordinated with commercial flood coverage.
Broadened All-Risk Perils — Causes of loss excluded or limited under a named-peril or packaged property form, brought closer to all-risk.
Gaps Between Property Forms — Coverage where multi-location or layered property programs leave inconsistent terms.
Business Interruption Tied to Covered Perils — Lost income resulting from a DIC-covered event, where included.
What It Does Not Cover
DIC policies are tailored, and commonly exclude:
Perils already covered by the underlying property policy (DIC sits over the difference, not in duplicate)
Wear, tear, and gradual deterioration
War and nuclear events, per standard market exclusions
Perils specifically carved out of the individual DIC form
Losses below the applicable deductible, which for catastrophe perils is often a percentage
Because DIC is manuscripted, the exact scope depends on the policy wording.
Who Needs Difference in Conditions?
DIC is important for businesses that:
Need earthquake or flood coverage their base property policy excludes
Operate on a restrictive named-peril or packaged property form
Hold property across multiple states or catastrophe zones
Face lender or lease requirements for broader property coverage
Want catastrophe and gap coverage coordinated in one layer
If your property program has meaningful exclusions, DIC is the tool that closes them.
How Coverage Is Structured
DIC coverage is typically written with:
A standalone policy sitting alongside — not replacing — the primary property program
Percentage deductibles for catastrophe perils such as earthquake and flood
Sublimits by peril and by location
Frequent placement in the surplus-lines market for flexibility
Terms manuscripted to the specific gaps being filled
Underwriting focuses on location, construction, values, and the underlying property form.
Real-World Claim Examples
A business with a named-peril property policy suffers an earthquake loss its base form excludes
A multi-state operation has inconsistent flood terms across locations, and DIC harmonizes them
A packaged property form excludes a cause of loss that DIC's broader wording covers
A lender requires catastrophe coverage the primary policy does not provide
In each case, DIC responds where the standard property policy stops.
Why Proper Placement Matters
DIC coverage varies widely based on:
Which perils are included and at what sublimits
How percentage deductibles apply by peril and location
How the policy coordinates with the underlying property program
The breadth of the manuscripted wording
A DIC policy that doesn't align with the base program can double-cover some risks and miss others.
Our Approach
At Cory Washington & Co., we use difference in conditions to turn a property program's exclusions into a deliberate plan — coordinating earthquake, flood, and other excluded perils into one layer that sits cleanly over your commercial property coverage, with no gaps and no wasted overlap.
Coverage should be designed, not assembled by accident.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See what to confirm in a difference in conditions policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed, in the Difference in Conditions Policy Feature Checklist.
Complete the Difference in Conditions Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get difference in conditions insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate difference in conditions insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of difference in conditions insurance?
Premiums vary from business to business. The main drivers of difference in conditions insurance pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Do I need difference in conditions insurance?
It depends on your situation. Some coverage is required by law; more often, difference in conditions insurance is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.