Sometimes these terms are used interchangeably by consumers but there is a difference between a cancellation and a non-renewal. 

A cancellation is the termination of a policy by the insurer during the policy period. Insurers are only required to provide 5 days notice when canceling a policy.  Under Arizona insurance laws an insurer can only cancel a policy for the following reasons:

• Non-payment of premium
• Conviction of a crime arising out of acts that increase the risk
• Fraud or misrepresentation in obtaining the policy or filing a claim
• Negligent factors or omissions that increase the hazard insured against
• Substantial change in the risk 
• Failure of the insured to eliminate or reduce conditions of the premises that will increase the probability of future losses

Cancellations of homeowners insurance policies are uncommon in Arizona. However, these and any other reasons may be used to non-renew a policy. 

A non-renewal is the insurer’s decision to not renew a policy for a successive policy period. Non-renewals are much more common and insurers are required to provide at least 30 days’ notice of a non-renewal before the end of the policy period. An insurer may also condition a renewal on reduction of limits or elimination of certain coverages in the policy which also requires at least 30 days’ notice.