adjective
- having insurance coverage that is inadequate to cover potential losses or damages
Usage: insurance and finance
Examples
- Many homeowners are underinsured and don’t realize it until disaster strikes.
- The family discovered they were underinsured when their medical bills exceeded their policy limits.
- Underinsured drivers may face significant financial hardship after a serious accident.
- The insurance agent recommended increasing coverage to avoid being underinsured.
- Small businesses are often underinsured against cyber attacks and data breaches.
- After the flood, residents learned that being underinsured meant paying thousands out of pocket.