Introduction

Dealing with an insurance claim denial can be frustrating and overwhelming, especially if you've paid your premiums and expected fair treatment. While insurance companies are obligated to act in good faith, they don't always uphold their responsibilities. If you believe your insurer wrongfully denied your claim in Charleston, Georgetown, Myrtle Beach, or Pawleys Island, you may have grounds to sue for bad faith. Here's what you need to know about pursuing a claim against your insurance company in South Carolina.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurer fails to fulfill its legal duty to act fairly and reasonably toward policyholders. South Carolina law holds insurance companies accountable when they:

• Unreasonably deny valid claims.
• Fail to investigate claims promptly or thoroughly.
• Misrepresent policy terms or coverage.
• Delay payment of a claim without justification.

If your insurer engages in these behaviors, they may be acting in bad faith.

When Can You Sue for a Denied Insurance Claim?

You can sue your insurance company for bad faith in South Carolina if the denial of your claim meets certain criteria:

1. The Claim Was Valid

   • Your claim must fall within the terms of your policy. For example, if your homeowner's policy covers water damage and your claim was denied for a covered event, you may have grounds for legal action.

2. The Insurer Acted Unreasonably

   • Denying a claim without a valid reason, ignoring evidence, or offering an unfairly low settlement could indicate bad faith.

3. There Was a Failure to Investigate

   • Insurance companies are required to investigate claims thoroughly. If your insurer ignored critical evidence or failed to conduct an investigation, you may have a case.

4. Policy Terms Were Misrepresented

   • If your insurer misrepresented the coverage, exclusions, or limits of your policy, this could be grounds for a lawsuit.

5. The Denial Caused Financial Harm

   • To sue for bad faith, you must show that the insurer's actions resulted in financial damages, such as out-of-pocket expenses, lost income, or additional costs incurred due to the denial.

What Can You Recover in a Bad Faith Lawsuit?

If you successfully prove bad faith, you may be entitled to compensation beyond the value of your original claim. This can include:

• Payment of the denied claim.
• Additional damages for financial losses caused by the denial.
• Punitive damages to punish the insurer for egregious conduct.
• Attorneys' fees and court costs.

How a South Carolina Insurance Bad Faith Attorney Can Help

Filing a lawsuit against an insurance company is a complex process. An experienced bad faith attorney can:

• Review your policy and claim details.
• Investigate the insurer's actions.
• Negotiate a fair settlement or take your case to court.

Our offices in Charleston, Georgetown, Myrtle Beach, and Pawleys Island are here to help South Carolina residents hold insurance companies accountable.

Conclusion

If your insurance company has wrongfully denied your claim, you don't have to face them alone. Contact our South Carolina insurance bad faith attorneys in Charleston, Georgetown, Myrtle Beach, or Pawleys Island to discuss your case and explore your legal options. We'll fight to ensure you get the justice and compensation you deserve.