First Party Insurance vs. Third-Party Insurance Disputes: What’s the Difference?

Average homeowners in Florida may encounter many new terms and concepts when navigating the world of property insurance. Two important but potentially confusing phrases are “first-party insurance disputes” and “third-party insurance disputes.” If you’re dealing with some kind of insurance dispute, the first logical step is to determine which of these categories your situation falls into. An experienced property insurance lawyer in Fort Lauderdale may be able to help.

What Is a First-Party Property Insurance Claim?

A first-party property insurance claim is something that most people are familiar with. This type of claim occurs when you file a claim with your own insurance provider. As long as the damage falls under a covered peril, you can file a claim and recover compensation for your losses.

What Is a Third-Party Insurance Claim? 

On the other hand, a third-party property insurance claim occurs when you file a claim under someone else’s policy. In the context of property insurance, this may occur when you suffer injuries while visiting someone else’s property. For example, you might trip and fall down a set of stairs while visiting a colleague’s home. As long as you can prove that you were not at fault for your own injuries, you may be able to recover compensation under the homeowner’s policy.

This is just one example of a potential third-party property insurance claim. You might also file this type of claim if you suffered property damage while storing items at someone else’s home. This might involve a professional storage company, or it may involve a business associate who agreed to store certain items in your home. For example, a film production company might become liable for the damage or loss of film equipment when storing it on behalf of another party involved in the creation of a film.

What’s the Difference Between Third-Party and First-Party Insurance Disputes?

These two types of claims are similar in that they can both lead to compensation for your various damages. However, the process of obtaining that coverage is different. When you file a first-party claim with your own insurer, you must follow the various conditions and details of your contract. When you file a third-party claim with someone else’s insurer, you are not bound by the same contractual obligations. Because of this, some might argue that a third-party claim is more advantageous.

The type and amount of compensation may also differ. While your “payout” in a first-party claim depends on the details of your insurance coverage, the financial settlement or “verdict” associated with a third-party claim is determined instead by the specific nature of your damages. In other words, you may be able to secure more compensation with a third-party claim.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources: 

investopedia.com/terms/t/third-party-insurance.asp

floridabar.org/public/consumer/homeownersinsurance/