Business risk
Underinsurance
Situation where the insured capital is less than the real value of the asset.
In practice
Activates the proportional rule and reduces the indemnity of any claim, including partial ones. It almost always arises from three places: declared average stocks, machinery at book value, and new work not updated.
Where it is addressed
This term is covered in Riesgos patrimoniales and applies when taking out Daños Materiales.
