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

Others point to problems in the U.S. health care system, such as uninsurance, underinsurance, and high co-payments and deductibles, and to underlying trends in chronic diseases that might be caused by nutritional policy failures.

From Slate

The lawsuits filed Wednesday, which are virtually identical except for details pertaining to the different defendants, allege that the problem of underinsurance is “pervasive” and stems from “cost estimator software many insurers use to recommend coverage limits to insureds,” as well as “poor design choices, perverse profit and commission incentives, volume business, and other shortcomings.”

From Los Angeles Times

Underinsurance is not a new problem, but it has become far more widespread and severe over the past three years, as rising inflation and climate change have created a highly volatile and unreliable insurance market and raised costs for homeowners — sometimes in unexpected ways.

From New York Times

The Commonwealth Fund has long tracked rates of underinsurance, when even people with coverage struggle to pay for care.

From Seattle Times

“We realize what a stressful situation people are under with the potential for the underinsurance gap that a lot of people are facing, not having enough money to rebuild. And if this can help them bridge that gap, we want to do so.”

From Seattle Times