Flood and Earthquake Exclusions, Difference in Conditions (DIC) Policy

Catastrophic perils such as floods (even when caused by a hurricane) and earthquakes are generally excluded from most standard property coverage forms.


To protect your business from these risks, you should consider a special type of policy called Difference in Conditions (DIC). Avalon can assist you in securing various quotations that can provide DIC coverage for your owned assets as well as Business Income and Extra Expense if your business cannot operate due to a catastrophic event

Some insurers may offer catastrophic perils coverage under a Property policy, but this is typically available in areas that are less prone to such losses. DIC policies are available from specialty insurers and typically provide coverage subject to specific limits, percentages and/or duration of time deductibles. Since coverage capacity is limited in certain areas for flood and/or earthquake, expect higher premiums and deductibles for higher risk geographic locations.


If you are interested in a DIC quotation, please contact your local Avalon representative or email marketing@avalonrisk.com