insurance purchased against damage or loss of property in an amount less than its true value, sometimes bought intentionally by the insured with full knowledge of the risk
Word origin
[under- + insurance]
Examples of 'underinsurance' in a sentence
underinsurance
It added that persistent underinsurance meant that individuals and businesses are still exposed.
Times, Sunday Times (2012)
Note that underinsurance has a more insidious effect than you might have thought.