What is the standard duration of most insurance policies?

Most insurance policies typically have a standard duration of one year. This timeframe is common in both personal lines (such as auto and homeowners insurance) and commercial policies. A one-year term allows insurers to reassess the risk and premium annually, reflecting any changes in the insured's circumstances or broader market conditions.

Shorter durations, such as six months, are sometimes offered, but they are less common for standard coverage and are often utilized for specific situations. Two-year policies may exist but are not considered standard in the industry. An indefinite duration is not applicable in the context of insurance policies; all policies have a predetermined time frame for coverage. Thus, one year is the foundational timeframe for evaluating insurer obligations and assessing risks.