Definitions for "Underinsurance"
When the sum insured is not enough to cover the maximum possible loss or damage.
Occurs when a property or item has been underinsured and the policy would not cover the insured property or items sufficiently to be reimbursed.
In life and health insurance, a condition in which inadequate insurance is carried to satisfy an individual's or business's insurance needs in the event of the insured's death or illness.