How a First-Party Property Lawsuit Works from Start to Finish

How a First-Party Property Lawsuit Works from Start to Finish

When your insurance company wrongfully delays, underpays, or denies a valid property damage claim, a first-party property lawsuit may be your best path to recovery. While filing a lawsuit can sound intimidating, understanding the process can help ease the stress and give you a clearer sense of what to expect.

Here’s a step-by-step breakdown of how a first-party property lawsuit typically works—from the moment you decide to take legal action to the resolution of your case.

1. Pre-Lawsuit Investigation and Evaluation

Before filing a lawsuit, an attorney will first review your situation in detail. This usually involves:

• Evaluating your policy coverage
• Reviewing all correspondence with the insurer
• Assessing inspection reports and estimates
• Documenting the full scope of the damage

This step ensures the claim is legitimate, that the insurer has failed to meet its obligations, and that a lawsuit is justified.

2. Filing the Lawsuit

If your attorney believes the insurance company acted in bad faith or breached the policy, they’ll file a lawsuit on your behalf in the appropriate court.

The complaint outlines:

• The facts of the loss
• The policy terms
• How the insurer failed to comply
• The relief you’re seeking (e.g., payment for the damage, legal fees, etc.)

Once filed, the insurance company is formally served with the lawsuit.

3. The Insurance Company Responds

After being served, the insurer (now the defendant) has a set period of time—usually 20 to 30 days—to file an answer or a motion to dismiss. In their response, they may:

• Admit or deny the allegations
• Assert defenses
• Possibly request the case be dismissed for legal reasons

4. Discovery Phase

This is where both sides gather and exchange evidence. Discovery is conducted with several tools outlined by law, which may include:

• Interrogatories: Written questions each side must answer under oath
• Requests for Production: Demands for documents, such as claim files, photos, and emails
• Depositions: Sworn, in-person testimony from you, insurance adjusters, experts, and others

Discovery can last several months and is critical to building your case. This phase often also includes hiring experts, such as adjusters, engineers, or other professionals, to assess the claim and provide expert opinions about the nature and cause of the damage you are claiming.  

5. Mediation or Settlement Discussions

Many first-party property lawsuits settle before ever reaching trial. Courts sometimes require mediation—a formal negotiation session with a neutral third-party mediator.

If both sides can agree on a fair resolution, the case ends here. If not, it proceeds to trial.

6. Trial

If the case doesn’t settle, it goes to trial. This may be a bench trial (decided by a judge) or a jury trial, depending on the court and the circumstances.

At trial, each side presents:

• Opening statements
• Evidence and witness testimony
• Closing arguments

The judge or jury then decides whether the insurance company breached the policy or acted in bad faith—and what compensation, if any, you should receive.

7. Post-Trial and Appeals

If you win, the court may award damages, interest, and sometimes attorney’s fees. If the insurer disagrees with the decision, they may file an appeal, which can delay final payment.

On the other hand, if you lose, your attorney may evaluate whether there's a basis to appeal the ruling on your behalf.

Final Thoughts

A first-party property lawsuit is a powerful tool forholding insurance companies accountable when they don’t honor their commitments. While the process can be time-consuming and complex, the goal is simple: getting you the compensation you’re owed under your policy.

The key to success? Partnering with an experienced property insurance attorney who understands how insurers operate—and how to fight back when they act unfairly.

If you’ve hit a wall with your insurance company, don’t give up. Averill & Reaney is just a phone call away.