A renewal of an insurance policy that comes with modified terms, such as higher premiums, increased deductibles, or reduced coverage. Insurers use conditional renewals when the risk profile has changed but does not warrant full non-renewal.
Related Terms
Premium
The amount you pay to an insurance company to maintain your coverage, typically billed monthly, quarterly, or annually. Premiums are determined by factors such as risk level, coverage amount, deductible, location, and claims history.
Cancellation
The termination of an insurance policy before its expiration date, initiated by either the policyholder or the insurer. Insurers may cancel a policy for non-payment, fraud, or a significant increase in risk. Policyholders can cancel at any time, though a short-rate penalty may apply.
Non-Renewal
An insurer's decision not to renew a policy at the end of its term. Unlike cancellation, non-renewal happens at the natural expiration date. Insurers must typically provide advance notice (30 to 60 days) and may decline to renew due to excessive claims or increased risk.