Short answer

If an insurer refuses to increase its final offer, you can: continue negotiating, use any contract dispute procedures (like an appraisal clause), file a complaint with the South Dakota Division of Insurance, pursue mediation or arbitration if available, or file a civil lawsuit. Which path makes sense depends on the type of claim, the policy language, the size of the claim, and how strongly the insurer’s position is supported by the evidence.

Detailed answer — step‑by‑step under South Dakota law

Start by identifying the type of claim and what your policy allows. Your practical options typically include the following steps.

1. Confirm the insurer’s position and deadline

Ask the company to put its “final offer” and the reasons for it in writing. Note any deadlines the insurer gives you to accept. A written explanation will help you evaluate whether the offer is reasonable and whether the insurer complied with the policy and claim‑handling obligations.

2. Preserve and organize evidence

Collect and organize all relevant documents: the policy, estimates, invoices, receipts, medical records, photos, videos, repair records, correspondence, and any independent appraisals. A clear file strengthens negotiation, internal reviews, appraisal, or a court case.

3. Review your policy for dispute-resolution clauses

Many policies contain an appraisal clause, arbitration agreement, or other dispute-resolution process that governs how disagreements over value are decided. If your policy has an appraisal clause, invoking it can result in a binding or nonbinding evaluation by neutral appraisers.

4. Try one last structured demand

Send a concise written demand that summarizes the facts, the damages or coverage position, attaches supporting evidence, and states a firm but reasonable monetary figure or remedy and a deadline for response. If you are represented by an attorney, the insurer will often take a demand from counsel more seriously.

5. Consider mediation or alternative dispute resolution

Mediation can be a faster and cheaper way to resolve disputes than litigation. You and the insurer can agree to a neutral mediator to help reach a settlement. Some policies or state rules encourage or require ADR before a suit.

6. File a complaint with the South Dakota Division of Insurance

If you suspect unfair claim handling or a refusal to pay without a reasonable basis, you can file a complaint with the state regulator. The South Dakota Division of Insurance accepts consumer complaints and can investigate insurer practices and sometimes obtain corrective action. Learn more and submit a complaint here: South Dakota Division of Insurance — Complaints.

7. Evaluate possibility of a lawsuit

If negotiation, appraisal, or regulatory complaint fails, you may have the option to sue for breach of contract (to recover sums due under the policy) or, in some situations, tort claims such as bad faith or unfair claims handling. Whether a tort claim is viable depends on the facts and the law. Before filing suit, consult an attorney to assess strength of claim, likely recovery, and litigation costs. For background on South Dakota insurance law (Title 58), see the state statutes: South Dakota Codified Laws — Title 58 (Insurance).

8. Small claims or civil court as alternatives

If the dollar amount falls within the small‑claims limits, filing in small claims court can be an economical option. For larger claims, civil court offers full discovery and remedies but increases cost and time.

9. Consult an attorney

An attorney can evaluate evidence, explain whether a bad‑faith or statutory claim exists, prepare demand letters, represent you in mediation, initiate appraisal, or file suit. If you retain counsel, provide them with the organized file you prepared in step 2.

Key practical notes

• Keep all communications in writing or follow up oral conversations with a confirming email or letter.
• Act promptly: delays can harm negotiating leverage and sometimes affect legal rights or deadlines. If you are close to a statute of limitations or a policy deadline, consult a lawyer quickly.
• Regulators cannot award money in the same way a court can in every case, but complainants often get help resolving documentation issues, correcting claim denials made in error, or forcing a company to re‑evaluate a claim.

Example (hypothetical facts)

Suppose you file a first‑party property claim after storm damage and the insurer’s “final” offer covers only part of your documented repairs. You send a written demand attaching repair invoices and photos, and ask for appraisal per the policy. The insurer refuses appraisal and declines to raise the offer. You then file a complaint with the South Dakota Division of Insurance while also consulting a lawyer about breach of contract litigation. The regulator investigates and requests additional documentation from the insurer; this sometimes prompts the insurer to re‑examine the file. If not, you may pursue appraisal (if required by contract), mediation, or a lawsuit depending on cost and expected recovery.

When might a lawsuit or bad‑faith claim exist?

Not every low or disputed offer means bad faith. A legal claim typically requires that the insurer had no reasonable basis for its position and acted unreasonably in handling the claim. Whether that test is met depends on the facts (what the policy covers, available evidence, prior communications, and industry standards). A lawyer can review whether a tort or statutory claim is available under South Dakota law and whether litigation is likely to succeed.

Helpful hints

• Get the insurer’s “final offer” and reasoning in writing; never accept an oral-only explanation.
• Keep a dated log of all calls, names of adjusters, and what was said.
• Use a written demand that includes a clear damages calculation and supporting documents.
• Check your policy for an appraisal clause or mandatory arbitration before filing suit.
• File a complaint with the South Dakota Division of Insurance if you think the company acted unfairly: dlr.sd.gov — Insurance Complaints.
• Contact a local attorney early if recovery will be substantial or facts are disputed; an attorney can preserve rights and evaluate potential bad‑faith claims.
• Consider cost vs. recovery: mediation or appraisal often resolves disputes faster and cheaper than full litigation.