underinsurance

[ uhn-der-in-shoor-uhns, -shur- ]

noun

1. insurance purchased against damage or loss of property in an amount less than its true value, sometimes bought intentionally by the insured with full knowledge of the risk.

Word History and Origins

Origin of underinsurance¹

under- + insurance

Example Sentences

Underinsurance reflects the extent to which coverage leaves people at risk of high out-of-pocket costs—a situation exacerbated by widespread job loss.

From Fortune