When the amount of insurance is less than the full value of the property insured.
The result of the policyholder's failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.
a condition in which not enough insurance is carried to cover the insurable value and especially to satisfy a COINSURANCE clause.
It refers to a condition where policyholder insures his car at much lower rate than the original price of the car.