Can I Lose My House After a Car Accident in Texas?
Can You Lose Your Home After an At-Fault Car Accident in Texas?
In theory, yes — if a lawsuit against you exceeds your insurance coverage. In practice, Texas has some of the strongest homestead protection laws in the country, which makes it far harder than in most states. Here’s how it actually works.
Texas Is a “Fault” State
In Texas, the at-fault driver’s insurance pays for the damage, up to the policy’s liability limits. State law requires a minimum of 30/60/25: $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. See the Texas Department of Insurance’s guide for the full requirements. If a crash causes damages beyond those limits, you can be held personally liable for the remainder — and that’s when personal assets, including your home, can theoretically be at risk.
Can They Actually Take Your House?
If the other party sues and wins a judgment larger than your policy covers, they could theoretically pursue a lien against your property. But Texas’s homestead exemption law makes this genuinely difficult: your primary residence is protected regardless of its dollar value, up to 10 acres in an urban area, or 100 acres for a single adult (200 for a family) in a rural area. Unlike most states, Texas places no cap on the home’s value — the protection is based on acreage, not price. A multimillion-dollar home within those limits is still fully protected.
The real risk goes up when you have high equity in a home that exceeds those limits, when your insurer refuses to settle within policy limits, or when the other party’s damages (serious injury, major lost wages) are large enough to justify pursuing a judgment beyond your coverage.
What Else Could Be at Risk
Your homestead is protected, but other assets generally aren’t: bank accounts, vehicles and personal property, non-homestead real estate (rental or vacation property), and in some circumstances, investments or retirement accounts. Being effectively “judgment-proof” — having no seizable assets — is the exception, not the rule, for most homeowners.
Protecting Yourself Before It Happens
- Carry liability coverage well above the state minimum, especially if you have real equity to protect
- Consider an umbrella policy for coverage beyond your auto liability limits
- Talk to an attorney about asset protection if you have significant non-homestead assets
If You’re Already Facing a Lawsuit
- Contact your insurance company immediately — they’re obligated to defend you within your policy
- Never ignore a lawsuit; missing a response deadline can result in a default judgment against you
- Talk to an attorney about your specific exposure and options
Facing a lawsuit after an at-fault accident?
Whether you’re worried about protecting your assets or need help defending a claim, call the Traub Law Office at (512) 246-9191 or contact us online for a free consultation.
About Andrew Traub
