Q: Can I be sued if I was in an accident and the damages we're $150k but my insurance only covers $50k?
If so can they go after my home? I don't own it yet but its got about $200k in equity.
A: Yes. If your insurance limits are not high enough to cover the damages you caused, the injured parties can sue you, and collect the difference from your assets. Each case is different, so you should consult an attorney regarding your specific risk. Start with the attorney provided to you by your insurance carrier.
William John Light agrees with this answer
A: Yes they can sue you and your insurance company would most likely defend you. If the your insurance coverage isn't enough and they pursue you for more your equity could be at risk. You are allowed a "homestead exemption" amount that you can protect but you might have more equity than your situation would allow. If you get sued then you should participate with the attorney provided and possibly consult with your own. Whatever you do - you should not try to "hide" any of your assets because that isn't always a good solution.
William John Light agrees with this answer
A: You didn't mention it, but I assume that you were at fault in the accident. If so, your insurance would pay $50,000 in damages, and represent you if suit is filed. After that, the plaintiff would either pursue you for the balance or not. You might try making an offer of settlement to the plaintiff (or his attorney), and explain your financial situation to him/her.
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