Claims & Disputes
First-Party Claim
First-party claims involve the insured seeking compensation from their own insurer for covered losses—such as a homeowner claiming for storm damage or an auto owner claiming for a collision under their own policy.
Last reviewed: May 2026 · Editorial methodology
Definition
A first-party claim is an insurance claim filed by a policyholder (the insured) directly with their own insurance company for losses or damages covered under their own policy. Examples include filing a homeowners claim for fire or water damage, filing an auto collision claim under one's own collision coverage, or filing a health insurance claim for medical expenses. In first-party claims, the legal relationship is between the insured and their insurer, and the insurer's duty runs directly to the policyholder. First-party bad faith laws in states like Florida, California, and Washington allow policyholders to sue their own insurer for unreasonable claims handling. Payment in first-party property claims is typically made based on Actual Cash Value (ACV) or Replacement Cost Value (RCV) depending on policy terms, minus the applicable deductible. First-party claims are distinct from third-party claims, where a claimant seeks compensation from someone else's insurance policy. The distinction matters legally because many states apply different bad faith standards and procedural requirements to first-party versus third-party claims.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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