> Source: https://insurancemonster.com/fair-plan-dic-cost-coverage/
> How the California FAIR Plan and a difference-in-conditions (DIC) wrap combine into near-full coverage, what the total costs, and where the seams are. Free broker help.
> InsuranceMonster - a brand of Monster Insurance Services, LLC, independent California insurance brokerage (CA DOI Lic. #6020398).

# FAIR Plan plus DIC: total cost and coverage

How the fire policy and the wrap fit together, and what to budget for both.

Written by [**Michael Kassing**](https://insurancemonster.com/experts/michael-kassing/), California-licensed insurance broker

Reviewed for accuracy on July 13, 2026 - California license #4445775

[About the author](https://insurancemonster.com/experts/michael-kassing/) - [Verify this license](https://cdicloud.insurance.ca.gov/cal/IndividualNameSearch?handler=Search)

## How the two policies split the work

Think of the FAIR Plan as the fire core and the DIC as everything wrapped around it. Neither is complete alone; together they cover most of what a standard homeowners policy would.

*Who covers what*

| Coverage | FAIR Plan | DIC wrap |
| --- | --- | --- |
| Fire, smoke, internal explosion | Yes | No |
| Personal liability | No | Yes |
| Theft of belongings | No | Yes |
| Water damage (plumbing, appliances) | No | Often yes |
| Loss of use / additional living expense | Limited | Broadens it |
| Falling objects, weight of ice or snow | No | Often yes |

## What the total costs

Budget for two premiums. The FAIR Plan is priced on your dwelling amount and wildfire hazard; the DIC is priced on the coverages it adds. The combined total is the honest cost of insuring a hard-to-place home.

See [how the FAIR Plan premium is set](https://insurancemonster.com/california-fair-plan-cost/) for the fire side, then a broker prices the DIC to match.

## Watch the seams between the two policies

Two policies means two deductibles and two sets of terms. The goal is for the DIC to line up cleanly with the FAIR Plan so there is no gap and no accidental overlap.

- Match coverage amounts so the DIC dwelling and contents align with the FAIR Plan
- Confirm loss-of-use limits are adequate once combined
- Understand each policy's deductible - a fire loss and a water loss can trigger different ones
- Make sure liability limits meet your needs (a common target is 300,000 to 500,000 dollars)

## When a single policy beats the pair

A surplus lines carrier can sometimes write a single policy that covers fire and everything else, avoiding the two-policy structure entirely. It is worth comparing that against FAIR Plan plus DIC. See [surplus lines home insurance](https://insurancemonster.com/surplus-lines-home-insurance-california/) and [hard-to-insure homes](https://insurancemonster.com/hard-to-insure-homes-california/).

## We price all three routes

Tell us about your home and we will quote the FAIR Plan, price a DIC wrap to fill the gaps, and check whether a single surplus lines policy covers you for less - then show you the three side by side. [Start a free quote](https://insurancemonster.com/contact.html) and we will do the comparison.

## 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)](https://www.cfpnet.com/difference-in-conditions-dic/) California FAIR Plan
- [Key Statistics and Data](https://www.cfpnet.com/key-statistics-data/) California FAIR Plan
- [Dwelling policies - what the FAIR Plan covers](https://www.cfpnet.com/policies/dwelling/) California FAIR Plan

## Related coverage and guides

- [Difference-in-Conditions](https://insurancemonster.com/difference-in-conditions-insurance-california/)
- [California FAIR Plan Explained](https://insurancemonster.com/california-fair-plan-insurance/)
- [Surplus Lines Home Insurance in California](https://insurancemonster.com/surplus-lines-home-insurance-california/)

[Get your free quote](https://insurancemonster.com/marketplace.asp)

## Frequently asked questions

### What is a DIC wrap in California?

A difference-in-conditions (DIC) policy is a separate policy that covers what the FAIR Plan leaves out - liability, theft, water damage, and usually broader loss of use. Homeowners pair it with a FAIR Plan fire policy so the combination works like a standard homeowners policy.

### How much does FAIR Plan plus DIC cost together?

It is the sum of two premiums: the FAIR Plan, priced on your dwelling amount and wildfire hazard, plus the DIC, priced on the coverages it adds. The combined total often meets or exceeds a standard homeowners policy, which is why shopping the standard and surplus lines markets first is worthwhile.

### Do the FAIR Plan and DIC have separate deductibles?

Yes. They are two policies, so a fire loss under the FAIR Plan and, say, a water-damage loss under the DIC can trigger different deductibles. A broker aligns the two so the coverage amounts match and there is no gap between them.

### Is FAIR Plan plus DIC the same as a homeowners policy?

It is close, not identical. Together they cover most of what a standard homeowners policy would - fire, liability, theft, water damage, and loss of use - but as two contracts with two sets of terms. When a single standard or surplus lines policy is available, it is usually simpler and worth comparing.

### Can I buy the DIC without the FAIR Plan?

No. A DIC wrap is designed to sit on top of a FAIR Plan fire policy and fill its gaps. It is not a standalone homeowners policy, so you carry both together or you replace the pair with a single full-coverage policy.