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.

Where this term matters

Claims Help Center →/claims/homeowners-insurance-claim →/claims/auto-insurance-claim →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Third-Party ClaimThird-party claims are made by injured parties or those who suffered a loss caused by the policyholder, seeking compensation from the at-fault party's liability insurer.Bad Faith InsuranceInsurance bad faith occurs when a carrier fails to investigate promptly, unreasonably delays or denies a valid claim, or fails to communicate claim decisions—potentially exposing the insurer to damages beyond the policy limits.Claim DenialA claim denial is the insurer's written notification that it will not pay a claim, citing specific policy provisions, exclusions, or conditions as the basis for the denial.SubrogationYour insurer's right to recover claim payments from the third party that caused the loss.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

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