What happens when you sue someones insurance company?

I went to someones house and thier dog pretty much bit half of my lip off. My lawyer said the best thing to do qwould be sue the insurance company (because my friends mom is broke). He said that it would have nothing to do with her. But now they are going to lose thier hoise apparently. Is it because were suing the insurance company or does this have anything to sdo with it? p.s. the case isnt even done yet. we still have like months to go before we even get the settlement amount or whatever. so thats why im not sure because how could she even think that if we dont even know if we'll win or lose the lawsuit??

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