First-Party Claims

What are First-Party Claims?

First-party claims are claims made towards one’s insurance company, not someone else’s, following an incident or event covered under their insurance policy. These claims are initiated by the policyholder seeking compensation or benefits outlined in their insurance contract, such as reimbursement for damages to property, medical expenses, or loss of income due to an insured event.

According to the Insurance Information Institute, “First-party claims are typically for property damage or loss, or physical injury.” First-party claims are common in various types of insurance, including auto, homeowners, health, and business insurance. 

First-party claims are beneficial because policyholders can receive compensation directly from their insurer without pursuing third parties for damages. For example, if a homeowner experiences damage from a storm, they would file a first-party claim with their homeowner’s insurance company to cover repair costs. However, the process can sometimes involve negotiation with the insurance company to ensure fair compensation, and policyholders should be aware of their policy limits and coverage details to maximize their benefits.