What is the outcome when an insured has multiple partial losses but is underinsured?

When an insured has multiple partial losses and is underinsured, the outcome aligns with the principle of proportionality in insurance coverage. Being underinsured means that the insured amount does not fully reflect the value of the property or the risks involved. In such cases, the insurer will only provide coverage based on the proportion of the coverage in relation to the actual value of the losses.

So, in this scenario, only a percentage of the partial losses may be covered. This means that the insured will need to bear the cost of the remaining losses because the insurance policy could potentially limit the payout based on the percentage of coverage they purchased compared to the total value of the losses incurred. As a result, the policyholder may receive reimbursement that reflects their level of coverage, which will typically translate to not receiving the full amount of the claims due to being underinsured.