What does it mean when insurance coverage is nonrenewed?

When insurance coverage is nonrenewed, it means that the policy will no longer provide coverage after its expiration date. This typically occurs at the end of the policy term, indicating that the insurer will not extend the existing policy into a new term. Nonrenewal might happen for various reasons, such as changes in the risk profile of the insured, the insurer's underwriting guidelines, or other operational reasons from the insurance provider. Understanding this concept is crucial for policyholders as they need to be aware that they must seek a new policy if they wish to maintain their coverage. This situation impacts their risk management strategy and planning for potential future coverage needs.