Updated August 17, 2026
A difference-in-conditions policy is a supplementary property policy that fills the gaps left by a limited primary policy, most commonly one issued by the California FAIR Plan.
Where the FAIR Plan covers fire and related perils only, the difference-in-conditions layer typically adds liability, water damage, theft and other perils. The two together approximate what a single admitted-carrier commercial policy used to provide.
A FAIR Plan policy alone will generally not satisfy a commercial lender's requirements on an LA apartment building. The FAIR Plan plus difference-in-conditions combination is now common across the county and needs to be assembled and documented before a loan closes.
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