Suing Your Property Insurance Company in South Carolina
Most claims settle without a lawsuit. When an insurer will not pay what the policy owes, here is how a South Carolina property insurance lawsuit works.
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Claims you can bring
- Breach of contract: the insurer did not pay what the policy owes.
- Bad faith: the insurer refused to pay first-party benefits in bad faith, a tort recognized in Nichols v. State Farm (1983). See insurance bad faith.
- Attorney fees: under S.C. Code § 38-59-40, if the insurer refused to pay within 90 days after a demand and the refusal was without reasonable cause or in bad faith, the court may award fees up to one-third of the judgment.
The deadline
S.C. Code § 15-3-530(8) sets a 3-year limit for an action on an insurance policy, and § 15-3-140 says a shorter limit written into the policy does not bar the suit. See claim deadlines in South Carolina.
Which court
A state-court case is usually filed in the Court of Common Pleas, the civil side of the circuit court, in the county where the property is. South Carolina has 16 judicial circuits. Many insurers are based out of state and may move a case to the U.S. District Court for the District of South Carolina, which has 11 divisions. Our area pages list the circuit and federal division for each county.
What to expect
- Demand: a written demand with the amount owed and the evidence, which starts the 90-day period under § 38-59-40.
- Complaint and answer: the lawsuit is filed and the insurer responds.
- Discovery: both sides exchange documents, including the insurer’s claim file, and take depositions.
- Experts: contractors, engineers or appraisers on the cause and cost of the damage.
- Mediation: many civil cases in South Carolina circuit court go to mediation before trial.
- Trial if the case does not settle.
Before you sue
Gather the full policy, all letters and estimates, photos, invoices, and a log of every call. Consider insurance appraisal if the only dispute is the amount. See denied claims.
Questions about a claim? Call 843-284-5790 or request a case review.
This page is general information about South Carolina law, not legal advice. Reading it does not create an attorney-client relationship. Every claim depends on its own policy and facts.