GLOSSARY

UMBRELLA POLICY Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.

UNDERINSURANCE The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

Underwriting The process of selection and classification of risk by the degree of insurability.

Unoccupied Property without people occupying or living within it. As opposed to vacant property, unoccupied property may hold furnishings.