Underinsured

Underinsured refers to a situation where a person’s insurance coverage is insufficient to fully cover the costs of a loss or claim. This means that if an accident, damage, or health issue occurs, the insurance payout won’t cover all the expenses, leaving the individual responsible for paying the remaining amount out of pocket. Essentially, being underinsured indicates that your coverage does not match the potential financial risk, which can lead to unexpected financial burdens during difficult times.