Understanding First-Party Insurance Claims

DECEMBER 2, 2020

Insurance can be a tricky subject. Most people know that they have insurance policies and can use their insurance coverage when damages to property occur. If property loss is experienced on a home, car, or another insured item, they expect to be able to recover the value of that property minus a deductible. What if the insurance company decides not to cover damages due to their interpretation of a policy which is different from how the owner intended? What happens when the insurance company offers their insured a payout, but the amount is not enough to recoup the initial loss? 

The insured can file a first-party claim against their insurance company to recover damages incurred for their insured property.

For example, imagine a hail storm damages your roof. You make a claim with your insurance company on a homeowner’s policy. A certified roofing expert verifies the roof has hail damage, and they send your insurance company the estimate to fix the damage. You expect your insurance company to cover the damage because, frankly, that is why you pay for the insurance in the first place. But your insurance company comes back and says the shingles on the roof are faulty, it is not hail damage at all, and they will not pay for the damage. In a scenario like this, you may have grounds to file a first-party insurance claim against your insurance company to challenge their coverage decision.

Using an attorney for first-party insurance claims 

The recovery process is often complicated, especially when it comes to dealing with insurance companies. Insurance companies are not always cooperative in helping their insured sort out a claim. When disputes arise, an attorney can help ensure that insurance companies treat their insurance fairly and reasonably. Unlike a third-party insurance claim where the defendant is another person, a first-party claim only deals with the insurance company and its representatives, making it possible to take a more aggressive approach towards settlement or trial.

At Dawson Law Firm, we recommend contacting an attorney before a claim is even filed so we can monitor the situation from the beginning. If an insurance company acts in bad faith, there will already be procedures in place to ensure the injured party is ahead of the game in recovering full compensation for losses.

We help you recover every step of the way.

 If a personal injury accident turns into a first-party insurance claim, Dawson Law is here to support you. We are well versed in first-party bad faith claims, so our team can take your case from beginning to end.

 We work to make sure that insurance companies meet their obligations and that individuals receive what they are fully entitled to under their insurance contract. Call Dawson Law Firm today for a free consultation.