What kind of claim does a policyholder file against their own insurance?

When a policyholder files a claim against their own insurance, it is referred to as a first-party claim. This type of claim arises when the insured individual seeks compensation for losses or damages directly related to their own property or personal injuries, as covered by their insurance policy.

The designation of 'first-party' indicates that the claim is made by the insured party directly against their own insurer, rather than seeking redress from another party's insurance. For instance, if a policyholder experiences damages from a fire in their property and files a claim to cover repairs, that would be a first-party claim.

The other options describe different scenarios. A third-party claim involves a policyholder making a claim against another party's insurance for damages they caused, while a direct or personal claim lacks specificity in the context of insurance terminology. Therefore, understanding the nature and implications of first-party claims is crucial for anyone studying commercial insurance practices.