What is a difference in conditions (DIC) policy?

A separate policy that sits on top of a FAIR Plan policy and covers what the FAIR Plan doesn't: typically water damage, theft, liability and loss of use. Together, the two work like a regular homeowners policy.

Do I need a DIC policy with the FAIR Plan?

Most owners do. Without one, a FAIR Plan home has no coverage for theft, water damage or someone getting hurt on the property, and most mortgage lenders expect full coverage.

Where do I buy a DIC policy?

Through a licensed agent or broker. Several insurers write DIC policies in California; a broker can quote the FAIR Plan and the DIC together so they fit.

FAIR Plan companion (DIC) policy: what it covers and how to get one

Updated October 26, 2026 · From the California Department of Insurance, the California FAIR Plan Association and other public records · Our data

The California FAIR Plan covers fire. A "difference in conditions" (DIC) policy, often called a companion policy or wrap-around, covers most of the rest, so the two together work like a regular homeowners policy.

What a DIC policy usually covers

Water damage from inside the house, like a burst pipe (not floods, which need flood insurance).
Theft and vandalism.
Personal liability if someone is hurt on your property, and medical payments.
Loss of use: living costs if you can't stay home after a covered loss.
Often personal property and other structures for non-fire losses.

Policies differ, so read what's included. Earthquake damage needs a separate earthquake policy.

Do I need one?

Most FAIR Plan homes do. Without it, a burst pipe, a break-in or a guest's injury isn't covered, and most mortgage lenders expect more than fire coverage.

Where to get one

Through a licensed agent or broker. Ask them to quote the FAIR Plan and the DIC policy together so the limits line up and there's no gap between them. Some DIC policies come from surplus lines insurers: they can be a good option, but they aren't backed by California's guarantee fund if the insurer fails, so ask about the company's financial rating.

What it costs

Insureability doesn't quote prices. The FAIR Plan part averages about $3,001 a year statewide; each ZIP code page shows the local average. Add the DIC premium to compare against a regular policy.

More: the California FAIR Plan, explained.

Common questions

What is a difference in conditions (DIC) policy?: A separate policy that sits on top of a FAIR Plan policy and covers what the FAIR Plan doesn't: typically water damage, theft, liability and loss of use. Together, the two work like a regular homeowners policy.
Do I need a DIC policy with the FAIR Plan?: Most owners do. Without one, a FAIR Plan home has no coverage for theft, water damage or someone getting hurt on the property, and most mortgage lenders expect full coverage.
Where do I buy a DIC policy?: Through a licensed agent or broker. Several insurers write DIC policies in California; a broker can quote the FAIR Plan and the DIC together so they fit.

Check a specific home. Type any California address for its fire and flood zones, who's writing there and what to do next: free home report. Questions? Ask Shirley.

More guides

Who's still writing home insurance in California (October 2026)Which big insurers are taking new customers, which are closed, and who's about to reopen.
California FAIR Plan (October 2026): what it covers, what it costs, how to get off itThe state's insurer of last resort, in plain English, with current costs by area.
Why California home insurance went up, and how to lower yoursWhat's driving premiums, the rate increases the state approved, and what actually lowers the price.
Safer from Wildfires: the discounts California insurers must giveThe home-hardening steps every insurer must credit, and the FAIR Plan's own list.

Insureability is not an insurance company, agency or broker and doesn't recommend insurers. This guide is general information from public records, not insurance or legal advice; your policy and the Department of Insurance are the authority.