What type of insurance seeks to fill coverage gaps for specific risks like natural disasters?

Difference in conditions (DIC) insurance is designed specifically to address coverage gaps that may exist in standard property insurance policies, particularly for unique or high-risk situations such as natural disasters. DIC policies typically provide coverage for perils that are excluded or limited in traditional insurance contracts, making them especially valuable for entities exposed to risks that fall outside of standard coverage, like floods or earthquakes.

This type of insurance allows businesses and homeowners to tailor their protection to their specific needs, effectively complementing their existing policies. For example, a property might be covered for fire and theft under a standard insurance policy but lack coverage for a flood, which DIC insurance can provide, ensuring that the insured is protected against a broader range of possible losses.

In contrast, excess insurance provides coverage above and beyond a primary policy's limits, while comprehensive insurance generally covers a wide range of risks but does not specifically aim to fill gaps in coverage like DIC does. Standard property insurance likewise may not include the specialized protections that DIC offers, thus not serving the same purpose of addressing specific, high-risk gaps.