Renewal

What Does Renewal Mean?

In the context of insurance, renewal refers to the continuation of coverage. The policyholder extends their contract with the insurance company to maintain their current coverage for a specified period. Typically, the insurance company will invite the policyholder to renew the policy as it approaches the end of its term.

Insuranceopedia Explains Renewal

Policyholders who are satisfied with their coverage often choose to renew their contract to maintain uninterrupted protection, as any lapse in coverage can lead to unexpected expenses or complications, such as the inability to secure the same coverage at the previous rate. Therefore, it is generally in the best interest of a content policyholder to renew their insurance contract when the opportunity arises.