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.
Related Terms
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.
Conditional Renewal
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.
Guaranteed Renewable
A policy provision that requires the insurer to renew your coverage as long as premiums are paid on time, regardless of changes in your health or claims history. The insurer may increase premiums for an entire class of policyholders but cannot single you out.