underinsures

Buys insufficient coverage

Underinsures means to insure something for less than its full value or replacement cost.

If a house worth $500,000 is insured for only $300,000, the owner has underinsured it: Many homeowners discovered they had underinsured their properties when wildfire destroyed the neighborhood.

The risk becomes apparent only when a claim is filed and the payout falls short.

deficiency

shortfall

Failure to reach quota

inadequateNot sufficient for purpose
insufficiencyShortfall in amount needed
underfundedInsufficiently financially supported

lacking · gap · incomplete · deficit · underestimation · undersupply · unprotected · exposed · vulnerable · undervalued

risk

exposure

State of being unprotected

vulnerabilityOpenness to harm
liabilityLegal or financial obligation
perilSerious threat of harm

hazard · negligence · recklessness · jeopardy · precariousness · gamble · unprotected · catastrophe · disaster · loss

coverage

policy

Adopted principle of action

premiumsPayments for insurance coverage
deductiblesPre-coverage personal payments
liabilityLegal or financial obligation

claims · benefits · underwriting · actuary · endorsement · exclusions · indemnity · compensation · reimbursement · payout

Opposites

insurance coverage adequacy

underinsuresoverinsures

Buys excessive coverage

Family

underinsured, underinsure, underinsuring

Familiarity: Top 500,000
Profile: Used worldwide · Timeless · Abstract · Negative · Rated G