Glossary

Policy period

The span between a policy's effective date and expiration date, usually 12 months, during which a loss must occur to be covered.

Also called: policy term, coverage period, effective and expiration dates

The policy period is the stretch of time during which your coverage is in force. It runs from the effective date to the expiration date, both printed on the declarations page. Most homeowners policies run 12 months, though some insurers write six-month terms. In the ISO form, coverage starts at 12:01 a.m. standard time at the residence premises on the effective date.

The key rule is that the policy covers losses that happen during the policy period. If a pipe bursts on April 20 and your policy expired on April 15, the claim belongs to the old policy or to none at all. If it bursts on April 16 under a renewed policy, the new one responds. For liability, the injury or damage must occur during the period, even if the lawsuit comes later.

That is why a gap matters. When you change insurers, line up the new policy's effective date with the old policy's cancellation date, so there is no day without coverage. Lenders typically want proof of continuous coverage. Insurers also commonly pause new policies when a hurricane is approaching, so do not wait until the last week to switch.

Our guide on when coverage starts, renews and ends covers timing in detail, and a binder can bridge the gap at closing.

Last reviewed October 10, 2026

In the index now

Related terms

Renewal The insurer's continuation of your policy for another term, usually with a new premium and sometimes with changed deductibles, limits or conditions. Nonrenewal An insurer's decision to end coverage at the end of the policy period by declining to offer another term, as opposed to ending it partway through. Cancellation The ending of a policy before its expiration date, either by the homeowner at any time or by the insurer for reasons the policy and state law allow. Binder A short-term written confirmation that coverage is in force while the full policy is being issued, often used as proof of insurance at a home closing. Declarations page The summary page at the front of a policy listing the insured, the property, policy dates, limits, deductibles, premium, mortgage lender and attached forms. Premium The price of a policy for its term, set by rebuilding cost, location, claims history, roof, deductible and other rating factors.

Related guides

Your declarations page explained, line by line The declarations page shows who and what is insured, the policy period, each limit and deductible, the premium and the forms attached. What each line means. Home insurance after a death in the family What happens to a homeowners policy when an owner or spouse dies: the Death condition, surviving owners, the mortgage, premiums and a first-month checklist. Insurance binders and proof of insurance at closing A binder is temporary written proof that coverage is in force until the policy issues. What a lender accepts and how to avoid closing delays. Insurance inspections after you buy a policy Why insurers inspect a house after binding, what they look for, how the first 60 days work under the ISO form and state law, and what to do if a report is bad. Moving: insuring two homes and your things in transit How to time homeowners coverage on the old and new house, what your policy covers during the move, and what a mover's liability does and does not pay. Nonrenewal vs cancellation of homeowners insurance: your rights Cancellation ends a policy mid-term for a short list of reasons; nonrenewal ends it at expiration. Notice periods run from 30 to 120 days by state.