Common questions

Short answers to the questions people ask most about US insurance, with the reasons behind them.

Home and renting

Is renters insurance required?No law requires it, but many landlords do. If your lease says you need it, you have to buy it to keep the lease.
Does homeowners insurance cover flooding?No. Standard home and renters policies exclude flood. You need a separate flood policy, and it usually takes 30 days to start.
Does renters insurance cover things stolen outside my home?Usually yes. A standard renters policy covers your belongings almost anywhere, so a laptop stolen from a café, a bike taken from a rack or things stolen from your car are covered, minus your deductible.
Does my renters insurance cover my roommate?No, not unless they're named on your policy. Renters insurance covers you and relatives who live with you, so a roommate needs their own policy or to be added by name.

Can I get car insurance with a foreign driver's license?Yes, some insurers will cover you, but you'll have fewer choices and pay more. Getting a US state license soon is the single biggest fix.
Does my car insurance cover a rental car?Usually yes, within the US and for personal use: your policy's coverage carries over to the rental. It covers damage to the rental only if you carry collision and comprehensive on your own car.

What does umbrella insurance cover?Extra liability coverage on top of your home and car policies, usually $1 million or more, for when someone sues you for more than those policies pay.

HMO vs PPO: what's the difference?An HMO covers care only from its own network and often needs a referral to see a specialist. A PPO lets you go outside the network for a higher share of the cost, and usually costs more each month.
I missed open enrollment. Can I still get health insurance?Only if a life event gives you a special enrollment period, like moving, losing other coverage, marriage or a new baby. Medicaid and CHIP accept people all year.
Is an explanation of benefits a bill?No. An explanation of benefits (EOB) is your health plan's summary of a claim. The bill comes separately from the doctor or hospital, and it should match what the EOB says you owe.
Is health insurance mandatory in the US?Not under federal law: there has been no federal penalty since 2019. But a few states require it, and some visas do too.
Do I need dental and vision insurance in the US?It's optional for adults. Most health plans don't cover adult dental care or glasses, so they're sold as separate, fairly small plans. Children's dental and vision are a standard benefit.
Does my health insurance work in another state?For emergencies, yes. For routine care, it depends on the plan type: HMO and EPO plans usually cover only their local network, while a PPO with a national network travels better.

What insurance do I need as a freelancer?Health coverage first, since no employer provides it. After that, it depends on the work: professional liability if you give advice or build things for clients, general liability if you work at client sites, and cover for your equipment.
What is a certificate of insurance?A one-page summary that proves your business has insurance: which policies, with which insurer, the limits and the dates. Clients and landlords often ask for one before you start work.
Do I need workers' comp if I have only one employee?In most states, yes: workers' compensation is required as soon as you hire your first employee. A few states only require it above a small number of employees, and Texas lets most employers opt out.