You paid your premiums on time and filed a legitimate claim. Yet your insurer delayed, made a lowball offer, or denied your claim outright. When you’re already dealing with an injury or property damage, that treatment feels like a betrayal. If you’ve been searching for a bad-faith insurance attorney in South Carolina, you’re not alone, and you have rights. Here’s what you should know, and how The Law Office of Steven M. Krause P.A. can help.

What Insurance Bad Faith Means in South Carolina

Every insurance policy carries an implied promise of good faith and fair dealing. Your insurer has to handle your claim reasonably, not simply look for ways to avoid paying. When an insurer unreasonably refuses to pay a valid claim, that can constitute bad-faith insurance conduct.

South Carolina law recognizes this. In Nichols v. State Farm Mutual Automobile Insurance Co., 279 S.C. 336, 306 S.E.2d 616 (1983), the South Carolina Supreme Court held that an insured who proves an insurer acted in bad faith or unreasonably in handling a claim can recover damages beyond the face amount of the policy. One important limit: if there is a reasonable ground for contesting your claim, there is no bad faith.

Common Bad-Faith Tactics

Insurers don’t always say no outright. Some adjuster tactics are quieter but just as damaging. Watch for these warning signs.

– Unreasonable delays in investigating or paying your claim

– Denials with no valid or stated reason

– Lowball settlement offers far below what your claim is worth

– Pressure to settle quickly before you understand your losses

Recognize any of these? Don’t assume the insurer’s decision is final. Attorney Krause can review what happened and explain your options.

First-Party vs. Third-Party Claims

This distinction matters. A first-party claim is a dispute with your own insurer, such as your auto or homeowner’s carrier, refusing to pay for a covered loss. South Carolina’s bad-faith protections generally apply to these first-party situations. A third-party situation, where you’re dealing with someone else’s insurer, follows different rules.

What You Can Recover, and How Long You Have

When an insurer acts in bad faith, you may be able to recover unpaid benefits you were owed, plus consequential damages in a tort action that are not limited by the contract. If the insurer’s actions were willful or in reckless disregard of your rights, punitive damages may also be available. Every claim is different, and the outcome depends on the facts.

Timing also matters. South Carolina’s three-year statute of limitations (S.C. Code Ann. § 15-3-530) generally applies, but waiting can weaken your case as evidence fades.

Talk to Attorney Steven M. Krause

You don’t have to take an insurer’s “no” as the final word. As a solo practitioner, Attorney Steven M. Krause personally reviews every denied or underpaid claim, so you work directly with your attorney from start to finish, never handed off to staff.

The Law Office of Steven M. Krause P.A., serves Anderson and all of South Carolina. Call 864-225-4000 to discuss a denied or underpaid claim with Attorney Steven M. Krause.