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By Emily Berrier

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Protect your California farm & ranch customers with a Difference in Conditions policy

November 20, 2023

With fire increasing in frequency and among the costliest perils for property owners in California, you play a critical role in ensuring farms and ranches have adequate coverage. Understand the California FAIR Plan, limitations and how to address them with the information below.

What is the California FAIR Plan?

The FAIR Plan was created out of need for California property owners to have access to basic fire insurance coverage they could not get from traditional market providers. FAIR Plan coverage options are intended to be temporary sources of peace-of-mind until traditional policies are available.

What does the FAIR Plan cover for farmers?

Basic property insurance is provided for farms by the plan’s Commercial Property policy. It’s a named peril policy that can cover fire, lightning and internal explosion losses. FAIR Plan policies are not comprehensive, and your farm and ranch customers may need more coverage to protect their personal and farm property from other causes of loss.

Difference in Conditions coverage can help fill the gap

Difference-in-Conditions (DIC) coverage for production agriculture accounts from Nationwide works with the California FAIR Plan to help fill coverage gaps for farm owners not addressed by a FAIR Plan policy alone. The Nationwide Farm DIC program uses an endorsement providing specific property coverages in combination with the same trusted liability coverage options that are currently afforded by the Nationwide Farm policy.

Nationwide’s DIC endorsement surrounds the FAIR Plan policy and provides ag-specific home and farm outbuilding coverage for losses other than fire. It extends coverage for losses to equipment and includes farm and personal liability. All coverages are subject to terms and conditions in the policy.

To be eligible, a customer must already have a FAIR Plan policy. Coverage is only available to current and former Nationwide farm policyholders and is subject to underwriting guidelines.

Help customers build their coverage

Finding the right DIC coverage requires a few steps that you can lead for your customers.

  1. Confirm your customer has a FAIR Plan policy with adequate coverage.
  2. If they have a plan policy but need additional coverage, work with your Nationwide Farm Underwriter to get a DIC quote with coverage matching the fair market value of farm property, machinery, buildings and other assets.
  3. Work with your customers to ensure they’re adequately managing the heightened risk.