Policy Period
The start and end dates your coverage is active.
Every policy has a start date and an end date, and together they make the policy period — also called the policy term. Auto policies in the US commonly run six or twelve months. Home and renters policies are usually twelve. The dates sit near the top of the declarations page.
The clock is more precise than most people expect. On most standard forms, coverage begins and ends at 12:01 a.m. local time at the address on the policy. So the expiration date is only covered for about a minute, and a loss later that same day generally falls outside the term.
What matters for a claim is the date of loss, not the date it gets reported. A fire that happens inside the period is generally handled under that policy even if the claim is filed weeks later. A fire that happens after the period closes is not.
Terms end. Near the end of one, the insurer either offers a renewal — a new period, a new premium, and a fresh declarations page — or issues a non-renewal notice. State rules generally set how much advance warning is required.
Changes made mid-term do not restart the clock. Adding a car, raising a limit, or attaching an endorsement takes effect on its own date, and the premium is usually pro-rated for the days left in the term. If one period ends before the next begins, the space between them is a lapse.
In real life
A homeowners policy runs March 1 one year to March 1 the next, effective at 12:01 a.m. A hailstorm hits at 9 p.m. on February 28 and dents the roof — that loss falls inside the term. A second storm rolls through at 5 a.m. on March 1. That one landed after the 12:01 a.m. cutoff, so it belongs to whatever policy is in force on the new term, if any.
Common questions
How long is a car insurance policy period?
Most US auto policies run either six months or twelve months, and six-month terms are a common default at many insurers because they allow re-rating more often. Home and renters policies are usually annual. The term length is printed on the declarations page next to the start and end dates, and it is generally set by the insurer rather than by state law.
What time does an insurance policy start on the effective date?
On most standard forms, coverage begins at 12:01 a.m. local time at the address shown on the policy, and it ends at 12:01 a.m. on the expiration date. That one-minute detail matters on the last day: a loss at 6 a.m. on the expiration date generally falls after the old term has already closed, not inside it.
Does my insurance policy renew automatically?
Many personal policies are set up to continue term after term, but a renewal is a new policy period with its own premium and its own declarations page rather than a continuation of the old one, and it generally takes effect once the renewal premium is paid. Insurers can also decline to renew, and most states require written notice a set number of days in advance.
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Definitions describe how these terms are generally used across the U.S. market. Wording, limits and exclusions vary by insurer, policy form and state — the policy you hold is what controls. See the full Insurance Glossary.