Overinsurance

Plain English Definition: Overinsurance means having more insurance coverage than necessary, leading to excessive premiums.

What Overinsurance really means for someone with an insurance policy

It occurs when the coverage amount exceeds the actual value of the insured item, causing you to pay for protection you can’t fully use.

Overinsurance Real World Examples

• Insuring a home for more than its market value.
• Carrying duplicate health insurance policies.
• Buying high-value life insurance coverage beyond financial needs.