Renewal

9 months ago

Insurance Glossary Team

1 minute

Plain English Definition: Renewal means extending an insurance policy’s coverage beyond its original term by paying premiums and agreeing to the insurer’s terms.

What Renewal really means for someone with an insurance policy

Renewal ensures continuous coverage by extending the policy for another term. Insurers may adjust terms like premiums and coverage limits based on risk evaluation.

Renewal Real World Examples

A homeowner renews their insurance policy annually to maintain coverage for their house.
A health insurance policyholder renews their plan during open enrollment.
A business renews its liability policy to keep its operations protected from potential lawsuits.