A policyholder discovers they have different insurance policies that cover the same risk. This situation is most accurately described as?

The situation described is best characterized as dual insurance. Dual insurance occurs when a policyholder has multiple insurance policies covering the same risk. This can happen when the same asset or liability is insured with more than one insurer, resulting in overlap in coverage.

Having dual insurance can lead to advantages, such as ensuring comprehensive protection, but it may also present challenges in claims handling and potential disputes over which policy should respond first in the event of a loss. It's important for policyholders to understand their coverage to avoid complications and ensure they are not inadvertently overpaying for redundant policies.

In contrast, while overinsurance refers to a scenario where the total amount of coverage exceeds the value of the insured asset, excess coverage typically refers to additional coverage beyond a certain limit provided by an existing policy. Policy overlap, while it sounds similar, is not a standard term in insurance terminology and may not accurately convey the concept of having multiple policies providing essentially the same coverage.