If I sued my relatives homeowners insurance for injuries sustained while diving in their pool, would it affect my relatives personally, money-wise?

What he told you is correct. If you pursue a claim against your relatives and that claim is covered by their homeowners insurance policy, the insurance company would be responsible for compensating you. Your relatives could be personally exposed for any judgment over and above the policy limits, but you could agree to limit your recovery to the policy limits if those circumstances arose. Please note that by attempting to answer your question, I am not acting as your attorney. I will do nothing further to protect or preserve your interests in the absence of any additional discussion with you about this matter. John Ratkowitz, Esq. Starr, Gern, Davison & Rubin, P.C. 105 Eisenhower Parkway Roseland, NJ 07068 Office: (973) 830-8441 Cell: (732) 616-6278 Fax: (973) 226-0031 Email: jratkowitz@starrgern.com  Skype: john_ratkowitz Web: www.starrgern.com.