How to read a DIC declarations page
Put the two declarations pages side by side. Most coverage gaps are visible in ten minutes.
The seven checks, in order
Work through these with both declarations pages in front of you. Each one takes under a minute and each one catches a specific, common failure.
| Check | What to compare | What a problem looks like |
|---|---|---|
| Dwelling limit | Coverage A on both pages | The DIC dwelling limit is lower than the FAIR Plan's |
| Personal property | Coverage C on both | Contents covered on neither, or only at a low sublimit |
| Personal liability | The DIC page | No liability line at all - the most common real gap |
| Loss of use | Coverage D on both | FAIR Plan limited and the DIC does not broaden it |
| Deductibles | Both pages | Two deductibles that both apply to a single event |
| Policy period | Effective and expiry dates | The two policies renew on different dates |
| Valuation basis | Replacement cost vs actual cash value | One policy is replacement cost and the other is ACV |
Why mismatched limits are the expensive one
If your FAIR Plan carries a 600,000 dollar dwelling limit and your DIC wrap carries 450,000, you do not have 600,000 of protection with a few gaps. You have a structure where a large non-fire loss is settled against the smaller number, and the difference is yours to fund.
This happens more often than it should, usually because the two policies were bought at different times from different sources and nobody reconciled them. It is also the easiest thing on this list to fix: it is a limit change, not a new policy.
The valuation basis is the same trap in a different form. A FAIR Plan written on replacement cost and a DIC written on actual cash value will settle the same loss two different ways - see replacement cost vs actual cash value for what that costs on an older roof.
The two-deductible problem
One event, two policies, potentially two deductibles. Whether both apply depends on how the loss is characterised and how the forms are written, which is not something you want to discover during a claim.
Ask the question before you buy, in writing: if a single loss triggers both the FAIR Plan and the DIC, do I pay both deductibles? Get the answer on paper and keep it with the policies.
What is not on the declarations page
The declarations page is a summary, and the exclusions that matter most are usually not on it. Two in particular:
- Earthquake and flood. Neither is typically part of a FAIR Plan companion wrap. If you want them you buy them separately - see does a DIC policy cover earthquake or flood?
- Named-peril limits on the FAIR Plan side. The FAIR Plan is a named-peril policy, so anything not named is not covered, however the DIC is worded.
For those you need the policy form itself, not the summary. Ask the carrier or your broker for the full form and the endorsement schedule.
Send them to us
If you would rather not do this alone, send both declarations pages and we will read them and tell you plainly what is coordinated and what is not. There is no charge and no obligation, and we will do it whether or not we placed the policies - a gap found now is much cheaper than a gap found at claim time. Send us your declarations pages or call us.
Sources
Figures and definitions on this page come from the regulator or the body that publishes them. Each link was checked on the review date above.
- Difference in Conditions (DIC) California FAIR Plan
- Residential Insurance: Homeowners and Renters California Department of Insurance
- Glossary of Insurance Terms California Department of Insurance
Frequently asked questions
What is a declarations page?
It is the summary page at the front of an insurance policy that states who is covered, the policy period, the coverage limits, the deductibles, and any endorsements. It is the fastest way to see what you actually bought, though it does not list every exclusion.
Should my DIC limits match my FAIR Plan limits exactly?
The dwelling limits should line up, because a mismatch means a loss settles against the lower number. Other coverages are less strict, since the DIC is adding things the FAIR Plan does not have at all. The goal is that the two policies together look like one complete policy with no gap and no needless overlap.
Will I pay two deductibles if one event triggers both policies?
Possibly, and it depends on how the two forms are written. Ask the question in writing before you buy and keep the answer with your policies. It is a fair question and any broker should answer it directly.
Can you review policies you did not sell me?
Yes, at no charge. Send both declarations pages and we will tell you what is coordinated and what is not. If everything is in order we will say so.
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