Can You Lose Your Home After an At-Fault Car Accident in Texas?
Getting into a car accident is scary, but what’s even scarier is the thought of losing your home because of it. Many people ask, “Can I lose my house due to at-fault car accident?” In Texas, the answer isn’t simple. The truth is, it can happen, but some laws might help protect you.
In this article, we’ll break down what you need to know about liability, what personal assets might be at risk, and the steps you can take to protect your home if you’re found at fault for the accident.
Understanding At-Fault Car Accidents in Texas
In Texas, the driver who causes a car crash is responsible for the damage. This is called an at-fault accident. Texas is a “fault” insurance state, which means if you’re at fault in a car accident, your car insurance must pay for the damages up to your liability limits.
Texas law requires drivers to carry minimum liability coverage:
- $30,000 for injuries per injured party
- $60,000 per accident
- $25,000 for property damage
But sometimes, the damages exceed your policy. If your insurance coverage isn’t enough to cover the costs, you could be held personally liable for the remaining amount, and that’s when your home and other assets could be at risk.
Can You Really Lose Your House?
So, can I lose my house due to at-fault car accident? If the other driver sues you and wins more than what your policy covers, the court may allow them to place a lien on your property, including your home.
But don’t panic. Texas has strong homestead exemption laws that can protect a portion of your home’s value from creditors. These laws make it hard for someone to take your home due to an at-fault crash, but not impossible.
Still, the risk of losing your home increases if:
- You have high equity in your home
- Your insurance company refuses to settle
- The other party has high medical bills, pain and suffering, or lost wages
What Assets Are at Risk in a Lawsuit?
When someone files a lawsuit, they might try to go after your personal assets if your insurance coverage isn’t enough. This includes:
- Bank accounts and savings
- Cars and personal property
- Non-homestead real estate
- Equity in rental homes or vacation homes
- Investments and retirement accounts (in some cases)
Being “judgment-proof” means you don’t have assets a creditor can legally take. But most people aren’t judgment-proof, and even your home can be at risk if the homestead exemption doesn’t apply fully.
Homestead Exemptions in Texas
Texas offers strong homestead exemption laws that protect your primary residence. This means creditors often can’t force the sale of your home, depending on the severity of the case and your situation.
Here’s what’s covered:
- Up to 10 acres in a city or 100 acres in the country (200 acres for families)
- The equity in your home, as long as it’s your primary residence
But this homestead exemption can protect you only under certain rules. If your home is used as collateral or you act fraudulently, the exemption may not apply.
Understanding asset protection after accident situations is key if you want to protect your home.
Steps to Protect Your Assets Before and After an Accident
You can take steps to protect yourself, even before you’re involved in a car accident:
- Review your insurance: Make sure your liability coverage is high enough.
- Add umbrella insurance: This provides additional protection beyond your insurance policies.
- Speak with a financial advisor or personal injury attorney about asset protection strategies.
- Create legal plans to protect a portion of your home’s value from creditors.
You can’t predict every crash, but you can create a level of security that gives you peace of mind.
What to Do If You’re Being Sued
If you’re being sued due to an at-fault car crash, here’s what to do:
- Contact your car insurance company right away.
- Don’t ignore the lawsuit—act fast.
- Call a car accident attorney or a team like ours.
Our accident lawyers and accident attorneys can help defend you. We understand car accident legal liability and what it takes to protect your assets. And remember: You won’t pay us a dime unless we recover money for you.
We even help with property damage for free.
Final Steps to Safeguard Your Home After an At-Fault Accident in Texas
So, can I lose my house due to at-fault car accident? The answer is: maybe. If the damages exceed your insurance coverage, and you have high equity, your home could be at risk. But with the right legal team, insurance coverage, and Texas’ strong homestead exemption, the risk can often be managed.
Don’t let the thought of losing your home keep you up at night. Talk to a personal injury attorney, review your liability, and take the steps to protect your home today.
