Over-insurance
Over-insurance means paying for more insurance than you need – either because the sum insured is higher than what the items are worth, or because you hold cover you can’t use. You are never paid more than your actual loss, so over-insurance is wasted money. The opposite is under-insurance.
Examples
You insure office furniture for DKK 500,000, but it’s only worth DKK 200,000. After a total loss you still only receive DKK 200,000.