What is the definition of a bundled policy in insurance?

A bundled policy in insurance refers to a package policy that includes multiple coverages. This type of policy combines different types of insurance protections into a single package, which can often result in cost savings and simplified management for the policyholder. For example, a home insurance policy might bundle property coverage, liability coverage, and additional endorsements into one comprehensive contract.

This approach allows policyholders to address various risks they face in one cohesive plan, as opposed to purchasing separate policies for each type of coverage. By consolidating multiple coverages, bundled policies can provide broader protection and may help ensure that there are no gaps in coverage that could occur if separate policies were purchased without carefully coordinating the different terms and conditions.