Overinsurance

{
  "id": "MLC-T-INS-002460",
  "term": "Overinsurance",
  "field": "Insurance and risk management",
  "definition": "A condition where the total amount of insurance coverage purchased for a specific risk exceeds the actual value of the insured property or the potential loss. This situation can arise from multiple policies covering the same asset or from an inflated valuation. Overinsurance does not result in a larger payout than the actual loss, as insurers typically apply principles of indemnity to prevent unjust enrichment.",
  "url": "https://mlchart.com/terminology/insurance/overinsurance/"
}