Legal Question in Personal Injury in Massachusetts

I am wondering if it is better to keep a mortgage or loan of some type on your home, in case of any lawsuit against you. Does the bank owning part of the residence protect you at all, or is it only necessary to be well insured. I am sure whatever insurance you carry, its never enough.

Asked on 8/02/10, 11:44 am

2 Answers from Attorneys

Jonas Jacobson Law Offices of Jonas Jacobson

The bank does not act as an additional insurer if you are sued for some kind of premises liability. Generally speaking, an insurer subrogates (or takes over, and defends, with attendant rights to effect settlement) claims made against you. They also pay those claims they settle, and to the extent they lose at trial, up to the policy limits. However, if the claim is for more than the amount of the policy, you may still be liable.

If you are concerned about liability, you may consider paying more premium for greater coverage, or buying a so called "umbrella" policy, to protect you against loss.

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Answered on 8/07/10, 1:29 pm
William Harrington Law Office of William T. Harrington

If you have not already done so and you own your home in your own name, you should file a homestead exemption. If you own your home with your spouse by tenants by the entirety, a judgment creditor cannot force a sale of your home so long as the home is owned by both of you. A homestead exemption protects up to $500,000 eqity in you principal residence.

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Answered on 8/07/10, 5:49 pm

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