Underinsured = having inadequate insurance coverage
Being in the insurance business, it’s easy for us to use terms without ever stopping to think if people really get what we are saying. I guess every industry has words that are used every day, but to those outside that industry, those words may not translate as well as one would think.
Hence, we’ve created, HMA’isms! These are everyday insurance terms made plain for your delight. This month’s word is “underinsured.”
I will use it in a sentence. If your home is “underinsured,” you would not have enough money to rebuild it in the event of a total loss. It is a common misconception that though you’ve made improvements in your home (that increases the value), that your homeowner’s insurance policy automagically adjusts.
Unless you are having your homeowner’s policy reviewed annually, it would be hard to know if you are underinsured or not. We just reviewed a homeowners policy for a client and found she was underinsured by about $90k. 
She has lived in the house for about 20 years and has never checked her insurance since getting the coverage. If something would have happened to her house, she would have had to come up with $90,000 to help with the cost of rebuilding her home.
One thing we like to communicate to our clients is… if your life changes, so should your insurance. It’s not about getting you to spend more money, it’s about protecting what matters most to you. To receive a complimentary policy review, just text “POLICYREVIEW” to 714.942.5097. We are more than happy to help!