If your business sits in an area where it could be at risk of flooding, fires, or earthquakes, you may not be properly insured if a natural disaster strikes.
That’s because standard insurance policies don’t typically cover the rare occurrences of disasters, but rather, are written to cover more frequent, lower-impact damage.
That’s why Difference in Conditions (DIC) insurance coverage is critical for filling in the gaps of what your standard plan might not.
DIC coverage is typically purchased most often by businesses at risk of natural disasters. However, homeowners can also purchase this insurance if their home policies don’t cover events that may be more of a threat to them, based on where their home is located.
For example, if your home is located in an area where it might be at risk of landslides, flooding, and earthquakes, DIC coverage could fill those gaps that a traditional home insurance policy might not.
To figure out if your business or home should have DIC coverage, start by researching what you may be at risk for. Is your business located in an area with frequent wildfires or flooding? Is there a risk of large earthquakes or landslides? These scenarios can be incredibly damaging to a business if not covered by a traditional insurance plan. After, check your insurance coverage or talk to your insurance broker to determine what risks are covered, and what risks are not.
DIC coverage is often tailored to a specific needs, so you can work directly with an insurance broker to determine what gaps you need filled by this type of insurance. Note that these plans will likely have high deductibles.
While none of us want to think about the threat of natural disasters, it’s important to take precaution ahead of time, especially as events like wildfires and flooding are becoming more common. Talk with an insurance broker today so you don’t have to worry about your home or business tomorrow.
Questions about whether a difference in conditions (DIC) insurance policy is right for you? Contact a Sea Mountain Business Insurance Specialist today!
