Legal Question in Personal Injury in Massachusetts

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.

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.