What does it indicate when a policy is “non-renewed”?

When a policy is “non-renewed,” it indicates that the insurer has decided not to continue the coverage when the policy expires. This means that upon the end of the policy term, the insurer will not offer to renew it for another period. This decision can stem from various factors, including changes in risk, claims history, or shifts in underwriting guidelines.

In contrast, when an insured chooses to cancel the policy, it indicates a proactive decision on the part of the policyholder to terminate coverage before it expires, which is not the same as non-renewal initiated by the insurer. Upgrading the policy to a new plan or transferring it to another insurer also does not align with the concept of non-renewal, as those actions involve continuing coverage in some form rather than ending it entirely. Non-renewal, therefore, signifies an automatic cessation of coverage upon expiration which requires the policyholder to seek other insurance alternatives.