What does 'renewability' refer to in insurance policies?

Renewability in insurance policies specifically refers to the terms under which a policy can be renewed. This concept is crucial for policyholders to understand, as it dictates the conditions and rights associated with continuing coverage once the initial term of the policy expires.

When a policy includes a renewal clause, it typically outlines the duration of coverage, the process for renewing the policy, any changes in premium or coverage terms, and whether the insurer can deny renewal based on the insured’s claims history or other underwriting criteria.

Having a clear understanding of renewability helps insurance buyers ensure they have continuous protection without facing unexpected cancellations or changes in coverage conditions as they reach the end of their policy term. This contrasts with concepts like changing providers, payment frequency, or expanding coverage, which do not directly address the continuity of the policy in its current form.