What is a key characteristic of differences in conditions forms?

A key characteristic of differences in conditions (DIC) forms is that they are designed to provide coverage for risks that are not included in standard insurance policies, effectively covering all risks except for those specifically excluded. This comprehensive approach allows for a broader scope of protection, making these forms especially useful for addressing gaps that might arise in other policies.

Unlike standard forms that may have limited coverage or specific peril inclusions, DIC forms fill in those gaps, providing a safety net that is not contingent on the co-insurance clauses that are present in many property insurance policies. Therefore, claimants can benefit from the extensive protection provided, as long as they remain aware of any explicit exclusions mentioned in the policy.

This characteristic allows businesses to manage risks more effectively without the necessity for co-insurance, which can often complicate claims processes or lead to reduced payouts based on valuation disagreements. The straightforward nature of the 'all risks' approach, coupled with the absence of coinsurance, makes DIC forms an attractive option for those seeking to mitigate their exposure to unforeseen claims.