underinsurance
Not enough protection
Underinsurance is having insurance coverage insufficient to fully replace what's lost or damaged.
A homeowner with underinsurance discovers after a fire that the policy pays less than rebuilding costs.
The term also applies to health coverage inadequate for medical needs: Many Americans face underinsurance even with employer-provided plans.
Uninsured interval within plan
- financial exposurePotential for monetary loss
- policy limitsMaximum claim payout allowed
- deductibleOut-of-pocket threshold amount
- out-of-pocketPaid from personal funds
Of risk calculation
- risk assessmentEvaluating likelihood of harm
- policy reviewExamination of official rules
- replacement valueCurrent cost to replace
- appraised valueExpert's price estimate
Legal status when insolvent
- medical debtMoney owed for treatment
- financial ruinComplete loss of wealth
- out-of-pocket costsExpenses you pay yourself
- claim denialRefusal to pay out
denied claims · foreclosure · debt collection · payment plans · hardship · personal liability · wage garnishment · credit damage
coverage gap
Uninsured interval within plan
- financial exposurePotential for monetary loss
- policy limitsMaximum claim payout allowed
- deductibleOut-of-pocket threshold amount
out-of-pocket · catastrophic loss · medical bankruptcy · partial coverage
actuarial
Of risk calculation
- risk assessmentEvaluating likelihood of harm
- policy reviewExamination of official rules
- replacement valueCurrent cost to replace
appraised value · underwriting · gap analysis · inflation adjustment
bankruptcy
Legal status when insolvent
- medical debtMoney owed for treatment
- financial ruinComplete loss of wealth
- out-of-pocket costsExpenses you pay yourself
claim denial · denied claims · foreclosure · debt collection · payment plans · hardship · personal liability · wage garnishment · credit damage · crowdfunding
- coverage gapsexclusions, caps, lifetime limits
- money mistakesoverspending, impulse buying, gambling debt, debt spiral, no savings
underinsuranceoverinsurance
Coverage beyond replacement value
full coverage · comprehensive coverage · overprotection · blanket coverage
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