What is meant by "non-renewal" in the context of insurance?

In the context of insurance, "non-renewal" specifically refers to the insurer's decision not to renew a policy when it reaches its expiration date. This means that the policyholder will not be provided a new term to continue their coverage. Non-renewal can occur for various reasons, including changes in underwriting standards, claims history, or changes in the risk environment associated with the insured item or individual.

Understanding this concept is essential for policyholders, as they need to be aware of their coverage status and consider alternative options for insurance should their current insurer decide not to renew their policy. This differs from the process of policy renewal, where an existing policy is extended for another term, and it is also distinct from policy endorsements, which are changes made to an existing policy to modify coverage. Non-renewal is a critical aspect to comprehend in the management of insurance policies and the overall risk management practices undertaken by individuals and businesses.