Can I Lose My House Due to an At-Fault Car Accident in VA?
Can I lose my house due to an at-fault car accident in VA? Losing your house is a possibility, but that outcome is not typical. If you are found legally and financially culpable for the victim’s damages, your house is only at risk when those damages exceed your insurance coverage, the victim files and wins a lawsuit against you, and the equity of your property is unprotected.
For legal help following a car crash, connect with a Richmond car accident lawyer from The Pendleton Law Team.
When You Are At-Fault for a Car Accident in VA
The contributory negligence laws in Virginia can actually work to protect parties bearing fault for an accident. Under Virginia’s system, victims can only sue the other party for damages if the victim bears no fault for the crash. If you are 90% to blame for the crash and the victim holds the other 10%, the only damages you have to cover will likely be your own.
There is a narrow legal exception to this system called the “Last Clear Chance” doctrine. If a partly-to-blame victim can prove you had the last clear chance to avoid or prevent the crash, they may be permitted to sue. The Pendleton Law Team can help you understand how these legal principles apply to your situation.
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Exceeding Insurance Limits Can Put Your House at Risk
Your auto insurance covers the victims’ damages if you are found liable for the crash and resulting consequences. Virginia drivers must meet the Commonwealth’s insurance requirements and carry at least:
- $50,000 in liability per person, and $100,000 per accident
- $25,0000 for property damage
The victim in your accident could experience injury and property damage costs that exceed your insurance coverage limits. They may file a lawsuit to collect compensation from your personal assets. In this situation, you could lose your house due to an at-fault car accident. The Pendleton Law Team can go over the details of coverage limits and liability in your accident.
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What Causes Damages to Exceed Insurance Limits
A car accident can lead to damages exceeding insurance limits when victims sustain severe injuries and property damage. For example, you may carry $100,000 per person for bodily injury, but the victim’s related costs total $400,000. The victim can sue you for the outstanding $300,000, so they can collect from your personal assets, such as your house.
The Pendleton Law Team has represented victims of severe and catastrophic injuries, including brain trauma and spinal cord injuries. We’ve seen firsthand what the long-term expenses for a spinal injury are. Victims often need multiple surgeries, rehabilitation, long-term care, mobility or other medical devices, and home modifications.
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Losing Your House Due to an At-Fault Car Accident in VA
Should the victim successfully brings a lawsuit to collect from your assets, you could lose your house when you are at fault for a car accident. The court could put a lien on your house. A lien is a legal claim against your property, preventing you from selling or refinancing until you’ve paid your debt.
Under some circumstances, the court could force you to sell your home to pay the outstanding damages. The Pendleton Law Team can explain how the legal process works in these cases.
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How Often People Lose Their Homes Due to Car Accidents
While it is possible to lose your house due to an at-fault car accident in VA, that is not the norm. The Pendleton Law Team has handled many accident claims, and it is not often that car accidents exceed policy limits. It is more likely to settle claims within insurance limits.
Even if the victim’s damages are excessive, there may be other ways for them to collect compensation than from your house. They might agree to a structured payment plan rather than forcing you to sell your home. They may collect through their own underinsured motorist coverage. Insurance companies must include this coverage in insurance policies unless the purchaser refuses it in writing.
How to Avoid Losing Your House Due to A Car Accident
There are ways to protect yourself from losing your home when you’re at fault for a car accident in VA. Talk to a personal injury attorney at The Pendleton Law Team about the proactive measures you can take.
You can increase the liability limits on your car insurance. You can also buy an umbrella insurance policy for additional liability coverage far beyond your auto insurance limits. If you have liability coverage of $200,000 plus $1 million in umbrella coverage, you have $1.2 million in protection.
The Virginia Homestead Exemption
You gain some protection from Virginia Code Chapter 2: Homestead Exemption of Householder. This law allows you to protect a small amount of your home’s equity through a homestead exemption. You can use it to protect up to $5,000 in real estate value. The homestead exemption provides very limited protection, but combined with your other insurance, it may help.
When You’re the Victim of an At-Fault Driver
The Pendleton Law Team can help when you are the victim of a negligent driver. We know how to value your losses and fight for justice and compensation. Our strategic negotiators will work to settle your claim with the at-fault party’s insurance.
If your damages exceed policy limits, we will be prepared to take on Virginia’s contributory fault laws and the at-fault driver in court. We have handled thousands of cases in central Virginia successfully, and are ready to do the same for you.
Trust Us With Your Car Accident Claim
It is possible to lose your house due to an at-fault car accident in VA. Still, that is not the typical outcome, and there are also measures you can take to protect your home and other assets.
If you are hurt by an at-fault driver, The Pendleton Law Team is here to help you get justice. Reach out for your free case consultation. We know what it takes to get victims compensated for their losses.
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