Overview
This article explains what a policyholder in South Carolina can do when an insurance company refuses to increase a final settlement offer. It describes practical steps, legal pathways, regulatory tools, and the likely outcomes so you can decide what to do next.
Disclaimer: This is general information and not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed South Carolina attorney.
Detailed answer — practical and legal options under South Carolina law
When an insurer declines to raise a last offer, you have several possible responses. Which route fits best depends on the type of claim (auto, property, liability), the policy language, deadlines, and how much additional money you need. Below are common, practical steps and the legal remedies available under South Carolina law.
1. Double-check the policy and the insurer’s offer
Read your policy carefully. Look for:
- Coverage limits and exclusions.
- Any appraisal clause (common in property/homeowner disputes).
- Requirements for filing suit or starting an appraisal/mediation.
If the offer is within policy limits and consistent with coverage terms, the insurer may be acting properly. If the offer ignores covered losses or misapplies policy terms, you have stronger grounds to push back.
2. Ask for a written explanation and documentation
Request, in writing, the insurer’s reasons for the final offer and copies of the loss evaluations, photos, contractor estimates, medical records, or other documents the insurer relied on. A clear written refusal helps if you later sue or file a regulatory complaint.
3. Use contractual dispute mechanisms (appraisal, arbitration, mediation)
Many property policies include an appraisal clause. If your policy has one, you can demand appraisal: each side picks an appraiser, and an umpire resolves disagreements about the amount of loss. Appraisal decides value, not liability. To find the appraisal clause, read your policy’s “Loss Settlement” or “Appraisal” sections.
Some policies require mediation or arbitration before litigation. Follow those steps or you risk losing the ability to compel them later.
4. Negotiate more — and set a new timeline
You can send a supplementary demand letter that documents additional losses, includes supporting evidence (estimates, medical records), and gives a reasonable deadline for a better offer. Be precise about the damages you seek and why they are covered.
5. File a complaint with the South Carolina Department of Insurance
The Department of Insurance reviews consumer complaints about insurers’ claims handling. It cannot force a private settlement, but it can investigate unfair or deceptive practices and, in some cases, take disciplinary action against an insurer. File a complaint at the Department’s consumer page: https://doi.sc.gov/consumers.
6. Consider litigation — breach of contract and other claims
If negotiations and alternative dispute resolution fail, you can sue the insurer for breach of contract to recover what the policy covers. In certain situations, you might assert claims for unfair or deceptive acts by the insurer. South Carolina regulates insurer conduct through statutes addressing unfair trade practices; see Title 38, Chapter 59 of the South Carolina Code: https://www.scstatehouse.gov/code/t38c059.php.
Be aware: suing has costs, takes time, and outcome uncertainty. Courts can award the contract amount, interest, and possibly extra damages in limited circumstances. Whether you can recover attorneys’ fees or punitive damages depends on the facts, the law, and the strength of any bad-faith or statutory unfair-practices claim.
7. Timing and deadlines matter
Statutes of limitations and policy notice deadlines can bar your claim if you wait too long. Act promptly: preserve evidence, save all communications in writing, and note dates. If you’re unsure about deadlines that apply to your case, consult a South Carolina attorney soon.
8. When to hire an attorney
Hire an attorney if:
- The insurer’s offer is far below a reasonable estimate of your covered loss.
- Your claim involves complex coverage questions or substantial damages.
- You suspect the insurer acted in bad faith or violated insurance law.
- You want an evaluation of the strength of a breach-of-contract or statutory claim before filing suit.
An attorney can evaluate coverage, advise about the feasibility of bad-faith or statutory claims, prepare demand letters, represent you in appraisal or mediation, and file suit if needed.
What to expect after you sue
Lawsuits often prompt renewed settlement talks. If litigation proceeds, expect discovery, possible motions, and potentially a trial. Settlement remains possible at any stage. If you win at trial or obtain a favorable settlement, you may recover the amount owed under the policy plus interest; additional remedies depend on the claims proven and applicable law.
Helpful Hints
- Keep every communication with the insurer. Save emails, letters, and recorded notes of phone calls (note date/time and who you spoke with).
- Get independent estimates (contractor bids, medical opinions, rental car invoices) to compare against the insurer’s numbers.
- Read your policy’s coverage, exclusions, and dispute-resolution clauses before responding.
- Ask for a written denial or explanation of the offer — written reasons help later if you file a complaint or lawsuit.
- If your dispute is over property damage, check for an appraisal clause and consider invoking it early.
- Contact the South Carolina Department of Insurance if you suspect unfair practices: https://doi.sc.gov/consumers
- Talk with a South Carolina lawyer experienced in insurance claims if the dollar amount is significant or the insurer’s behavior seems unreasonable.
- Act quickly. Legal deadlines and policy notice requirements can prevent recovery if missed.