Dawn Pinnisi
February 6, 2025
A car accident in Paramus, New Jersey, may lead to many questions, most importantly: Can I lose my house due to an at-fault car accident? The fear is valid when personal assets, including your home, are under threat. Varcadipane & Pinnisi, P.C., is here to help our clients through these stressful moments and seek feasible solutions for them to be able to protect their property and live worry-free.
Liability Coverage Overview
Auto insurance policies are necessary for the protection of your assets in case of any accident. This liability coverage is compulsory in New Jersey to cover other people’s damages or injuries in case one is involved in an accident. Most of the time, minimum liability insurance differs from state to state; in New Jersey, it is $15,000 per person, $30,000 per accident for bodily injury, whereas property damage is $5,000.
If the damages exceed your coverage limits, your personal assets could be exposed, including your home. This is why it’s important to review your policy to ensure it provides adequate protection. Adding a robust liability policy or an umbrella insurance policy offers a safety net, helping to safeguard your assets from potential lawsuits and unexpected financial burdens.
How Can I Safeguard My Assets?
Losing your home after a car accident can be overwhelming; however, there are practical steps available to protect your assets:
- Augment Your Insurance Coverage: Raise your limits of liability or purchase an umbrella insurance policy. These policies provide extra coverage beyond the standard liability policy. This cover is the most preferred by drivers in New Jersey to get their personal assets protected from a lawsuit.
- Explore Asset Protection Strategies: There are various legal mechanisms, such as starting a trust or utilizing the state’s homestead exemption laws, that can keep your property safe from creditors.
- Talk to a Professional: A car accident lawyer can walk you through your asset protection options and ensure your coverage is sufficient to protect you from a lawsuit.
Can I Lose My House Due to At-Fault Car Accident?
The short answer is yes—but it is not common. In New Jersey, you are putting your home at risk if the damages you cause exceed the amount of your insurance coverage and the injured party wants to sue you. New Jersey law, however, does provide some protections. For example, state homestead exemption protects a portion of your home’s equity from creditors, but the protection is relatively limited.
Since most cases settle within the at-fault driver’s insurance limits, the loss of their home is extremely unlikely, as noted above. However, the risk will be minimized with the right type of insurance and a good legal representative.
Important Steps After a Car Accident
If you’ve been involved in an auto accident, taking these key steps can help ensure your legal and financial interests are safeguarded. According to Enjuris, these steps involve the following:
- Move to a Safe Location and Stop Your Car: According to New Jersey’s code, a driver is required to always stop and move his vehicle out of traffic, keeping it as close to the scene of the collision as possible.
- Look for Injuries: First, check yourself for injuries, then check on others. In case of critical injuries to you or others, do not move them until emergency help arrives.
- Police Report: If there is an accident involving death, injury, or property damage above $500, the police should be called. A police report might be crucial evidence for your claim.
- Gather Information from Witnesses: Collect the contact details of any witnesses who may have been present at the scene; the police report may not contain this information.
- Take Photos: Take a photo of anything relevant—the scene, vehicle damage, weather, and traffic signs or signals.
- Get Medical Attention: Even if injuries seem minor, visit a doctor promptly to identify any hidden issues and link them to the accident.
- Notify Your Insurance Company: Report the accident even if you’re not planning to file a claim immediately. Delays can complicate coverage.
- Consult an injury attorney: If the accident involves significant losses, a lawyer can help secure adequate compensation for injuries, property damage, or lost wages.
Protect Your Assets Today
Let the fear of what may happen to one’s house in the event of a car accident be the thing to lie awake over. The right approaches and legal advice will well be able to save one’s property and move on with life. The law firm of Varcadipane & Pinnisi, P.C., is here to help. Call us today at (201) 588-1500 for a free consultation.
Dawn M. Pinnisi
Dawn M. Pinnisi is a distinguished attorney with a track record of excellence in advocating for victims of injury and negligence. Dawn is a Founding Partner of the Firm, and a member of the Multi-Million Dollar Advocates Forum. Dawn has been recognized as a Super Lawyer, and has received awards from the National Trial Lawyers and Best of the Bar.
University: J.D. Brooklyn Law School
Bar Number: 33771999
Locations: New Jersey and New York.
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