Answers to Personal Injury, Wrongful Death, and Car Accident Questions
Q: I am being sued for a San Diego, CA auto accident. Are my personal assets at risk where I own 2 properties other than my house? My insurance policy limit is $100,000 and my personal injury defense attorney says the Plaintiff's damages may be more than that.
A: Legally, if a Plaintiff obtains a judgment in excess of the insurance policy limit, you may be personally responsible for any amount in excess of the policy limits. In other words, the insurance company will pay up to the policy limits and you are responsible for the rest.
However, in practicality, most plaintiff personal injury lawyers will not pursue the personal assets of a defendant because it is usually too difficult to collect. This encourages insurance policy limit settlements (here, $100,000) even where the injuries exceed the policy limits.
In your case, however, that might not be the case. Your real estate assets may be at risk if the Plaintiff obtains a judgment in excess of the policy limits. The reason for that is because the properties are not your primary residence and are therefore not subject to homestead protections.
I would consult in person with your insurance defense attorney and document everything in writing with your insurance company. Encourage and request that if there is any risk of a judgment being obtained for over $100,000, that they will do everything they can to settle the claim for policy limits.
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