What is a "non-renewal" in insurance?

A "non-renewal" in insurance refers to the insurer's decision not to renew a policy once it reaches its expiration date. This action can occur for various reasons, including changes in the policyholder's risk profile, claims history, or adjustments in the insurer's underwriting guidelines. When a policy is non-renewed, the insured individual or entity is notified of the decision, which gives them the opportunity to seek coverage from another provider before coverage lapses.

Understanding this concept is crucial for both insurance producers and policyholders, as it emphasizes the importance of staying informed about the terms and conditions of insurance policies, including the potential for non-renewal. This knowledge allows both parties to manage their insurance needs proactively and ensure ongoing coverage if necessary.