Underinsurance

{
  "id": "MLC-T-INS-003403",
  "term": "Underinsurance",
  "field": "Insurance and risk management",
  "definition": "A condition where the amount of insurance coverage purchased is insufficient to cover the full value of the insured property or the potential cost of a loss. This situation can lead to a policyholder receiving less than the full amount of their loss, even if the loss is within the policy's limits, due to co-insurance clauses. It is a common issue in property insurance when property values increase but coverage limits are not updated.",
  "url": "https://mlchart.com/terminology/insurance/underinsurance/"
}