What is Primary Property DIC Program?
The Primary Property Difference in Conditions (DIC) Program is a specialized insurance product designed to fill gaps in standard property policies. It provides coverage for perils that are typically excluded from traditional property insurance, such as earthquake, flood, and landslide. This type of policy is often tailored to meet the needs of businesses facing elevated property risks due to geographic location or operational exposure.
Unlike excess DIC, which supplements coverage limits, a primary DIC policy stands on its own and can serve as the first layer of protection. This makes it especially valuable for organizations with unique facility risks or properties in high-hazard zones.
Who needs it
This coverage is commonly sought by businesses that manage high-value commercial properties, real estate portfolios, or critical infrastructure. It’s also used by contractors, manufacturers, and retailers operating in areas prone to natural catastrophes. Clubs, associations, and event organizers with valuable physical assets or leased event spaces may also benefit from primary DIC protection.
What it typically covers
A Primary Property DIC policy may include coverage for:
- Earthquake and seismic damage
- Flooding and water intrusion not covered by standard property insurance
- Landslide or earth movement
- Collapse due to hidden decay or improper construction
These policies may also offer broader terms for certain perils, providing flexible protection for buildings, inventory, and equipment. For example, a manufacturing facility located near a fault zone may use a DIC policy to insure against earthquake-related structural loss.
Common exclusions or limitations
While DIC programs expand coverage, they also come with exclusions. Common limitations include:
- Damage due to wear and tear or poor maintenance
- War or nuclear events
- Intentional acts or fraudulent claims
- Unscheduled or non-disclosed locations
It's important to review the policy language carefully and consult with an underwriter to understand specific exclusions and underwriting factors.
Factors that influence cost
Several variables impact the premium for a Primary Property DIC Program:
- Property location and exposure to catastrophic perils
- Construction type and building age
- Value of insured property and equipment
- Loss history and risk management practices
For instance, a coastal retail operation with a history of flood claims may face higher premiums due to increased exposure and underwriting risk.
Proof of insurance & compliance
Many commercial leases, lender agreements, and municipal contracts require proof of property insurance, including coverage for earthquake or flood. A Primary Property DIC policy can help businesses meet these compliance standards and secure financing or tenancy rights. Be sure to coordinate with your broker to issue proper certificates of insurance.
How to get a quote
To explore your options for Primary Property DIC coverage, work with an experienced broker who understands catastrophic risk exposures and property underwriting. They can help assess your needs, gather location-specific data, and obtain quotes from specialty carriers. Request a custom quote today to get started.
For related programs, you may also want to explore our DIC - Earthquake and Flood Insurance solutions or learn more about National All Risk and DIC Underwriting options for broader protection.
Frequently Asked Questions
What does a Primary Property DIC policy cover that standard property insurance does not?
It typically covers perils like earthquake, flood, and earth movement, which are excluded from most standard property insurance policies.
Is this coverage only for large businesses?
No, it can benefit small to mid-sized organizations with property in high-risk areas or those with unique facility exposures.
Can I purchase DIC coverage without a standard property policy?
Yes, a Primary DIC policy can stand alone, unlike excess DIC which requires an underlying policy.
Does it include coverage for business interruption?
Some DIC policies may offer limited business interruption coverage, but it varies by carrier and terms.
How long does it take to get a quote?
Timing can vary, but quotes are generally available within a few business days after submitting property details and risk information.
Still have questions? Talk to a local insurance expert.