underinsure
Insufficient policy protection
To underinsure is to carry insufficient insurance coverage for potential losses.
Someone who underinsures their home may find themselves unable to rebuild after a disaster: The policy only covered half the replacement cost—they had badly underinsured.
The practice often stems from trying to reduce premiums or underestimating risk.
Statement of ownership or truth
- settlementResolved dispute or colony
- compensationPayment for services rendered
- damagesCompensation for injury
- out-of-pocketPaid from personal funds
financial strain · bankruptcy · shortfall · gap · underpayment · reimbursement · catastrophe · default
State of being unprotected
- inadequacyState of being insufficient
- shortfallFailure to reach quota
- deficiencyLack of something needed
- unprotectedWithout safeguard or shield
precariousness · susceptibility · defenselessness · unpreparedness · weakness · gap · underestimation · oversight
Extent of inclusion
- liabilityLegal or financial obligation
- exposureState of being unprotected
- premiumsPayments for insurance coverage
- deductiblesPre-coverage personal payments
policies · protection · underwrite · actuary · exclusions · indemnity · underwriter · solvency
claim
Statement of ownership or truth
- settlementResolved dispute or colony
- compensationPayment for services rendered
- damagesCompensation for injury
out-of-pocket · financial strain · bankruptcy · shortfall · gap · underpayment · reimbursement · catastrophe · default · indebtedness
exposure
State of being unprotected
- inadequacyState of being insufficient
- shortfallFailure to reach quota
- deficiencyLack of something needed
unprotected · precariousness · susceptibility · defenselessness · unpreparedness · weakness · gap · underestimation · oversight · neglect
coverage
Extent of inclusion
- liabilityLegal or financial obligation
- exposureState of being unprotected
- premiumsPayments for insurance coverage
deductibles · policies · protection · underwrite · actuary · exclusions · indemnity · underwriter · solvency · underfunded