Johnes, who has been living in an apartment for nearly a year and had renters insurance, didn’t realize his policy was about to expire until he got a bill stating his renters insurance had been renewed automatically.

Johnes did not know that his renters insurance would renew automatically. “Why did my renters insurance renew without my permission?” he asks.

Like Johnes, many people are often shocked when they get a renewal bill for their renters insurance that they did not approve.

What could have happened? Let’s find out.

Terms Of Renters Insurance

You always need to know what terms and elements are included in your renters insurance policy document. If you are not familiar with renters insurance, some elements and terms could be a bit confusing. One of the terms or aspects of renters insurance is the policy period.

The policy period is the time that your renters insurance policy is in effect. You need to always make sure that you understand when your renters insurance policy begins and when it ends.

This is where renewal comes in.

What Is Insurance Policy Renewal?

Insurance renewal is the continuation of your current insurance policy for another specified period.

An insurance renewal refers to the standard length of time your insurance policy is in effect without your insurer adjusting your rate.

It is vital to note that even though there can be a change during renewal, your rates should stay the same through each policy renewal unless you make the change.

New proofs of insurance are usually enclosed with the renewal document.

Does Renters Insurance Renew Automatically?

Most renters insurance policies have a one-year term.

When you are buying insurance, you need to be keen on the policy period and renewal procedures.

In most cases, when the policy expires, you will not need to reapply, not every year. Your insurance company will almost always offer to renew your policy automatically, and your coverage will continue if you pay the renewal premium.

Yes, renters insurance can renew automatically.

The good thing is: your insurer will give you a new policy document every year outlining the terms of offered renewal coverage, and you can update it as needed. That is the moment you need to make sure you take advantage of any discounts available to you.

When Will Your Insurance Policy Be Renewed?

The renewal period of your insurance policy is largely based on the date your plan took effect. Ordinarily, your insurance company will renew your insurance policy one year after the effective start of your policy. That is the standard procedure.

However, policies often renew annually or semi-annually.

For instance, if your renters insurance policy became effective on October 1st, 2019, it will likely automatically renew on October 1st, 2020. You could forget that date of renewal and risk lapse in coverage. But you don’t need to worry.

Two things can happen. Your insurance company could renew your insurance policy automatically if you agreed to it when the policy was set up. Or, your insurance company will let you know about the renewal in advance.

In both cases, your insurance company will send you a refreshed declarations page and proof of insurance.

Automatic Renewal Is Essential

As humans, we are forgetful. When you forget to renew your renters insurance, you risk a lapse in coverage.

This makes it important that your renters insurance renews automatically so that you pay your insurance on time.

Your insurance company will generate the renewal offer of the policy about two months before the expiry of the current term. This is meant to allow you time to think about the renewal.

You will be able to consider the offer, learn if there are any changes and why, and understand when and how the next term will be billed.

What About Non-Renewal?

If it occurs, the non-renewal of a renters insurance policy is a separate matter. Were the policy not to renew, it can be because your insurance company decided not to cover you anymore, perhaps because of your risk characteristics.

However, since non-renewal is regulated and because it applies only to specific situations, your insurance company will always offer to renew your renters insurance policy automatically.

Will Your Price Change When Your Renters Insurance Renews?

There could be a change in when your renters insurance renews. Your policy premium might increase or decrease when your insurance policy renews, or it might stay the same.

There are various reasons why your price can change. Here are some examples:

Your policy price may increase if you filed a claim in the last year.

• If you have stayed with your insurance company for more than two years, you will get a loyalty card, which may decrease your policy price.
• If you have acquired more personal properties or belongings or if they have increased in value, your policy price will also change.
• When you have previously committed fraud or made serious misrepresentations on your application, your insurance price will go up.
• When you have previously had a lapse in your renters insurance policy, it will highly affect your renewal policy price.

When Does your Renters Insurance Renew Without your Permission?

People do not often get upset because their renters insurance renews without their permission.
The reason people get upset is that they never knew their renters insurance would renew automatically.

However, sometimes your renters insurance renews automatically when you do not know. This is when you can say it renewed without your permission. When this happens, there are different scenarios at play:

• You could have missed the automatic renewal term and just realized it.
• You , perhaps, moved out of your apartment and forgot to cancel your renters insurance policy.
• When you sign your renters insurance document, you must have your insurer discuss with you all the terms of the policy coverage when the policy is set up.
• If you knew your renters insurance policy would automatically renew, then you gave consent.
• When your renters insurance happens to renew automatically, “without your permission”, scrutinize the policy and see if the automatic renewal clause is available or if you are still sufficiently covered.

What Happens If You Do Not Renew Your Insurance?

To state the obvious, when you fail to renew your renters insurance policy, your personal property and belongings will no longer be covered.

If by any chance, your policy failed to renew automatically and there was a loss, damage, or fire on your personal property with no coverage, you would be in a much worse situation.

First, you could lose all your personal property and belongings because you forgot to renew your renters insurance.

Second, you risk a lapse in coverage, which will highly affect your renewal policy prices and other subsequent insurance policies

Your insurer will also inform anyone listed as an interested party that your policy was not renewed.

Finally

In most cases, your renters insurance will renew automatically.

As a renter with renters insurance, you need to study your policy document and understand its terms and obligations.

It would be best if you worked with your renters insurance experts so that they explain to you the policy and the coverage, and ensure that you understand the terms of the coverage.