Can I lose my house....
Depends on how much equity you have in the house.
Last time I looked, PA doesn't have a homestead exemption.
So you might have to sell your house to pay a judgment that exceeds your policy limits.
However, it's way too early to be concerned about that.
The guy has a long way to go to prove his "internal injuries" and your insurance company will defend any lawsuit if it can't settle within the policy limit.