Yeah it's kind of funny how the story broke. I've seen this discussed on serveral websites and overwhelmingly people wanted to find out what insurance company would do this to a 12 year old, boycott them, etc. I blame the media for most of that
Its the same if you were in your brother's car and he caused an accident and you were injured. You would sue his insurance policy, not him.
Though, whichever insurance policy is determined to be liable, it could affect their insurance rates. (I have no clue when it comes to residental insurance though).