Can I Lose My House Due to At-fault Car Accident in Florida?

In Florida, you generally cannot lose your home due to a car accident judgment as long as the property qualifies as your Florida homestead under the state constitution.

Florida’s homestead law offers some of the strongest protections in the country. A judgment creditor, including someone injured in a car accident, cannot force the sale of your homestead to satisfy a civil judgment.

When Is a Home Protected from a Car Accident Lawsuit?

Your home is protected if:

• It is your primary residence.
• It is located in Florida.
• It fits within the land size limits (up to ½ acre in a city or 160 acres in unincorporated areas).
• You own it in your individual name, not inside a business entity like an LLC.

If these conditions are met, even a large judgment from a serious car accident cannot result in the forced sale of your home.

What Happens If I Am Sued After an Accident?

If you’re found liable in a car accident and your insurance doesn’t cover all damages, the injured party can get a judgment against you. That judgment can be used to collect from non-exempt assets such as bank accounts, investment accounts, business interests, and non-homestead properties.

But your homestead residence will still be protected.

The only exceptions would be if your property doesn’t qualify as a protected homestead, such as being over the lot size limit. In addition, if you own your home in a corporation or LLC, it would not qualify as a protected homestead.

If you own other properties, those may be at risk if a court orders you to pay a judgment exceeding your insurance coverage. Additionally, the exemption does not protect against foreclosure or unpaid property taxes.

How to Protect Your Home Against a Car Accident

1. Maintain Adequate Auto Insurance Coverage

Florida requires all drivers to carry a minimum of $10,000 in personal injury protection (PIP) and $10,000 in property damage liability (PDL). However, these limits may not be enough in a serious accident. Adding bodily injury liability (BIL) and uninsured/underinsured motorist (UM/UIM) coverage can help protect your assets.

2. Purchase Umbrella Insurance

An umbrella policy provides additional liability coverage beyond standard auto insurance. It can cover legal fees and judgments exceeding your primary policy limits, offering extra protection for your home and other assets.

3. Use an Asset Protection Trust

An offshore trust protection trust can help shield non-homestead properties from potential car accident liability

4. Transfer Property to Multi-Member LLC

Property owned by a multi-member LLC is effectively protected from personal car accident liability. A creditor is limited to a lien on distributions from the LLC and cannot access the property itself.

Frequently Asked Questions

Can I really lose my home after an at-fault accident in Florida?

No— Florida’s constitutional homestead exemption prevents forced sale of your primary residence to satisfy most civil judgments, including those arising from car accidents.

What rules determine if my house qualifies for homestead protection?

Your home must be your permanent residence and fit within land limits (½ acre in a municipality or 160 acres outside) to receive the full protection.

Could creditors place a lien on my home even if it’s exempt?

They can place a lien, but they cannot force a sale. That lien won’t result in foreclosure as long as the homestead exemption remains valid.

What happens if I use proceeds from selling my homestead?

If you sell your homestead and intend to reinvest in another Florida homestead, those proceeds can remain exempt if kept separate and reinvested within a reasonable time.