On a FAIR Plan? You probably need a second policy. Here is why.
A DIC policy (difference in conditions, often called a wrap or companion policy) is a second insurance policy that fills the gaps a last-resort plan leaves open. FAIR Plan style policies typically cover fire and a short list of related perils, and not much else. A DIC adds back most of what a standard homeowners policy would have included, so the two together approximate normal coverage.
What a FAIR Plan typically does not cover
Exact coverage varies by state and policy, so read yours, but last-resort fire policies commonly exclude some or all of: theft, personal liability (someone injured on your property), water damage from burst pipes, falling objects, loss of use or additional living expenses if you are displaced, and medical payments to guests. For a household used to a standard homeowners policy, those are not edge cases; they are the everyday risks.
What the DIC adds back
A DIC is designed to sit alongside the last-resort policy: the FAIR Plan handles fire, the DIC handles most of the rest. Insurers that write DIC policies price them knowing the fire risk is carried elsewhere, which is exactly why they remain available in areas where full homeowners policies are hard to place.
How to pair the two correctly
- Buy them together, through the same independent agent if you can. The DIC should be matched to the FAIR Plan policy's limits and start date so there is no gap or overlap.
- Check the dwelling limits line up. If the FAIR Plan insures the structure for less than rebuild cost, fix that first; a DIC does not repair an underinsured fire limit.
- Ask specifically what the DIC excludes. Flood and earthquake are usually separate policies everywhere, DIC or not.
- Reshop the pair at every renewal. Households often land on a FAIR Plan during a hard market and stay there out of inertia; carriers returning to your state (the exact thing this site tracks) may write you a full policy again.
Where to find one
State regulators publish guidance and, in some states, lists of insurers offering DIC coverage. California's Department of Insurance covers DIC options in its residential insurance resources, and the California FAIR Plan itself points policyholders toward DIC pairing. Elsewhere, an independent agent is the practical route: ask directly which carriers write DIC or wrap coverage in your area. Enrollment trends for the last-resort plans are on our FAIR Plan tracker, and if you landed here after a cancellation letter, start with the non-renewal playbook.
Coverage details vary by state, insurer, and policy form. This guide explains the concept; confirm specifics against your actual policy documents with a licensed agent or your state insurance department.