Which scenario best represents a first-party claim?

• A. A homeowner files a claim for their own dwelling damaged by fire.
• B. A neighbor sues for damages from a car accident.
• C. A business files a product liability suit against a supplier.
• D. An insurer seeks subrogation against a third party.

Answer: (A)

First-party claims happen when the policyholder requests payment from their own insurer for a loss covered by their policy. The homeowner filing a claim for damage to their own dwelling after a fire is exactly that: the insured is seeking compensation from their own insurer for a loss to property they own.

The other scenarios involve different dynamics. A neighbor suing for damages is a third-party claim, where the plaintiff seeks compensation from someone other than their own insurer. A business suing a supplier is also a third-party claim. An insurer pursuing subrogation is the insurer acting on behalf of the insured to recover from a third party after paying a claim, not a direct first-party claim by the insured.