First Party Claim — Insurance Claims Definition
General
A claim by the policyholder against their own insurer for benefits under their policy.
First party claims include property damage to your own building, collision on your auto policy, and health benefits. The contractual duty is between insured and insurer; bad faith standards may apply in some states.
Contrast with third party liability claims where the insured is defended against someone else's suit.
Examples
You file a homeowners claim for hail damage to your roof — that is a first party claim with your carrier.
Common Mistakes
Insureds use adversarial litigation tactics without understanding the contract is with their own insurer in first party claims; documentation and cooperation still matter.
