What is a Third Party Loss?

A “Third Party Loss” is a situation that involves another person other than the insurer (company) and insured (homeowner, typically). More common are “First Party Losses” that involve only the insurer and insured such as roof damage to a covered home after a particularly bad storm. Third Party Losses occur most often when someone is injured on or by the insured’s property and decides to sue the insured for their damages.

The “Personal Liability” coverage on your homeowner’s policy will typically cover such claims, but it depends on the exclusions of the policy and the specific situation of the claim. Talk to your agent about the specifics of your policy and take a look at our Homeowners Insurance 101 for more information on the standard coverages for home insurance policies.

Disclaimer: Information found on this webpage is intended for general use only and does not in any way guarantee or exclude coverage for a specific policyholder. This information is not intended as a substitute for professional advice. Please refer to your insurance policy for specific coverage and exclusion information.