Adjusting Today Issue #3042 – Difference in Conditions Coverage

Property Insurance Roundtable

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:

[1:45] What is the Difference in Conditions (DIC) coverage?

[2:36] Why are these policies often misunderstood by policyholders?

[3:34] Who or what types of businesses need this type of coverage?

[7:19] 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.

Panelists:

Jim Mahurin, Risk Management Consultant and member of the Society of Risk Management Consultants

C. Todd Thomas, Executive Director of Consulting Services and member of the Society of Risk Management Consultants - Adjusters International

R. Scott deLuise, CCIM, CPPA, SPPA, President and CEO - Adjusters International/Matrix Business Consulting

Mentioned in This Episode:

Adjusters International

Adjusting Today - Difference in Conditions Coverage #3042