Underinsurance exists if the sum insured is below the actual value of the objects to be insured. Example: If material assets (e.g. household effects, factory equipment) are to be insured against loss or destruction, their exact current or new value must first be determined. This value is then the so-called insurance value and forms the basis of the sum insured. If this sum is below the actual value, it is referred to as underinsurance. In this case, the insurance company reduces the compensation in the event of damage in the ratio of the sum insured to the insured value.
Example: sum insured for the facility 150,000 DM, actual value 300,000 DM, underinsurance 50 %. If z. For example, if a loss of 100,000 EUR occurs, the insurance company only grants compensation of 50,000 DM.