Car accidents can turn your life upside down. If you were at fault in a collision, you might worry about more than medical bills or car repairs. One question many drivers have is, “Can I lose my house due to an at-fault car accident in Nevada?” The answer isn’t simple, but understanding liability, insurance coverage, and your legal options can help you protect your home and other assets.
Understanding Liability and At-Fault Accidents in Nevada
Being at fault in a car accident means you are responsible for the damages caused to others. Nevada follows a comparative fault system, which determines how much each driver is responsible for in a collision. If you share some of the blame, your liability may be reduced. But if you are fully at fault, the other party can seek full compensation for their injuries, lost wages, and property damage.
Your insurance policy plays a significant role in covering these costs. Minimum liability coverage in Nevada might not be enough if damages are high. When coverage falls short, the injured party may pursue your personal assets, which could include your house.
How Car Insurance Covers At-Fault Accidents
Car insurance typically includes two types of liability coverage: bodily injury liability and property damage liability. Bodily injury liability covers medical bills and lost wages for people injured in an accident you caused. Property damage liability covers repairs to another person’s vehicle or property.
In Nevada, state minimum requirements are usually $25,000 per person and $50,000 per accident for bodily injury, and $20,000 for property damage. Catastrophic accidents, however, can exceed these amounts. If damages go beyond your insurance limits, you could be responsible for the remaining costs out of your own pocket.
Many drivers only carry the minimum required coverage, which puts them at higher risk. Increasing your coverage or adding an umbrella policy can give extra protection and reduce the chance of losing personal assets like your home.
When Personal Assets, Including Your Home, Are at Risk
If the damages from an accident surpass your insurance limits, the injured party can file a lawsuit for the unpaid amount. The court can issue a judgment that allows them to collect from your personal assets. This could include:
- Bank accounts and investments
- Vehicles
- Secondary properties or vacation homes
- Personal valuables
Your primary residence may also be at risk if you don’t have protections in place. Nevada law offers homestead protections, which shield a portion of your home’s equity from creditors. However, these protections have limits, and large judgments may still put your house at risk. Understanding these laws and how they apply to your situation is critical.
How Nevada’s Homestead Exemption Works
Nevada’s homestead exemption protects a certain amount of equity in your primary residence. This means that if someone sues you and obtains a judgment exceeding your insurance coverage, they cannot claim this protected portion of your home.
The exemption protects up to $605,000 in 2025 for a primary residence. If your home equity exceeds this limit, the portion above the exemption could potentially be targeted to satisfy a legal judgment. Joint ownership can increase the protection amount if spouses file together. Knowing your home’s equity and how much is protected can help you plan ahead and reduce risk.
Steps to Protect Your Home and Assets
Preventive measures can help reduce your risk of losing your home due to an at-fault car accident. These steps include:
- Review your car insurance policy regularly to ensure adequate coverage.
- Consider purchasing an umbrella policy for extra liability protection.
- Explore asset protection strategies such as trusts or LLCs to separate personal assets from business or high-risk exposure.
- Keep documentation up to date, including insurance papers and property records.
Timing matters. Implementing these strategies before an accident occurs is key. Attempting to transfer or hide assets after an accident could be considered fraudulent and may lead to legal trouble.
Dealing with a Lawsuit After an At-Fault Accident
If you are sued following an accident, acting quickly can prevent further financial damage. Steps you can take include:
- Hiring a car accident lawyer experienced in personal asset protection.
- Negotiating payment plans with the plaintiff to avoid liens or seizures.
- Exploring bankruptcy protection if financial obligations are overwhelming.
Keeping calm and professional while gathering all necessary documentation will help your attorney protect your assets and guide you through the legal process.
Injury Severity and Insurance Limits
The risk of losing your home also depends on the severity of injuries and the total damages claimed. Minor accidents with small property damage usually do not threaten personal assets. Catastrophic accidents, however, especially those involving severe injuries or fatalities, can exceed insurance coverage.
For example, if you caused an accident resulting in $100,000 in medical expenses and $50,000 in property damage, but your policy covers only the minimum, the remaining $125,000 could be pursued through personal assets. Homestead exemptions and other protections may limit the risk, but understanding your exposure beforehand is crucial.
Protecting Your Home After an At-Fault Accident
While it is possible to lose your house due to an at-fault car accident in Nevada, careful planning and adequate insurance coverage greatly reduce this risk. Reviewing your policies, understanding homestead exemptions, and consulting with a dedicated car accident lawyer can help you safeguard your most valuable assets. If you have questions about protecting your home or are facing a lawsuit after a car accident, call Friedman Injury Law at (702) 970-4222 for a free consultation. Acting early can give you peace of mind and a clearer path forward.
