underinsuring
Inadequate policy protection
Underinsuring is carrying less insurance coverage than needed to fully protect against potential losses.
A homeowner who insures a property for half its replacement value is underinsuring.
The practice saves money on premiums but creates financial risk: They discovered they'd been underinsuring the business when fire damage exceeded their policy limits.
Failure to reach quota
- out-of-pocketPaid from personal funds
- bankruptcyLegal status when insolvent
- debtMoney owed another
- insolvencyInability to pay debts
foreclosure · default · damages · settlement · arrears · deficit · receivership · liquidation
State of being unprotected
- vulnerabilityOpenness to harm
- hazardSource of potential harm
- perilSerious threat of harm
- jeopardyRisk of harm
liability · negligence · recklessness · gamble · precariousness · misjudgment · oversight · unprotected
Not sufficient for purpose
- deficientHaving too little
- insufficientBelow required quantity
- incompleteLacking necessary parts
- minimalSmallest amount needed
lacking · meager · scant · sparse · limited · shortchanged · substandard · underfunded
Adopted principle of action
- premiumsPayments for insurance coverage
- deductibleOut-of-pocket threshold amount
- liabilityLegal or financial obligation
- claimsStatements of truth
underwriter · beneficiary · exclusions · endorsement · actuary · clause · rider · limits
shortfall
Failure to reach quota
- out-of-pocketPaid from personal funds
- bankruptcyLegal status when insolvent
- debtMoney owed another
insolvency · foreclosure · default · damages · settlement · arrears · deficit · receivership · liquidation · hardship
exposure
State of being unprotected
- vulnerabilityOpenness to harm
- hazardSource of potential harm
- perilSerious threat of harm
jeopardy · liability · negligence · recklessness · gamble · precariousness · misjudgment · oversight · unprotected · uncovered
inadequate
Not sufficient for purpose
- deficientHaving too little
- insufficientBelow required quantity
- incompleteLacking necessary parts
minimal · lacking · meager · scant · sparse · limited · shortchanged · substandard · underfunded · undervalued
policy
Adopted principle of action
- premiumsPayments for insurance coverage
- deductibleOut-of-pocket threshold amount
- liabilityLegal or financial obligation
claims · underwriter · beneficiary · exclusions · endorsement · actuary · clause · rider · limits · gaps