In the event that a judgment is granted against me and it is more than what my insurance policy covers, what can happen to my assets?

UPDATED: Feb 14, 2014

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In the event that a judgment is granted against me and it is more than what my insurance policy covers, what can happen to my assets?

I am getting sued over an alleged auto accident that occurred just over 2 years ago. I just recently invested in some real estate with myself and 2 other people.In the event that the plaintiff wins a judgement against me, what can they do with the real estate that I invested in?

Asked on February 14, 2014 under Accident Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When an individual buys liability insurance, there is essentially always a policy limit in place. This refers to the maximum amount of money the insurance company is responsible for. For example, if you buy a car insurance policy that has a $50,000 limit, the insurance company is going to pay out only $50,000. If there are $100,000 in damages, then the insurance company isn't going to pay the excess $50,000. This money, if awarded by a judge or jury, will have to come from somewhere else.

Answer: If the judgment exceeds your insurance policy then under the laws of all states in this country, the real estate that you invested in can be subject to execution for the excess above your policy.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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