Risk & Underwriting
Underinsured
Definition
A condition in which the amount of insurance coverage is insufficient to cover the full value of the insured property or the potential liability exposure. Being underinsured can result in significant out-of-pocket costs after a loss.
In Zach’s Words
“Being underinsured means you have insurance, but not enough. Your house is worth $800K to rebuild but you only have $500K in dwelling coverage? You're underinsured by $300K. This is one of the most common problems we see, and it usually happens because people haven't updated their coverage as property values increased.”
— Zach Nadler, CIO