Bad Faith Blog

Summary: Insured’s property was destroyed by fire. Homeowner’s insurer denied claim based on nonrenewal of policy prior to fire loss. Mortgagee institutes foreclosure action against insured, who filed third-party action against insurer for breach of contract, bad faith refusal to pay claim, and indemnity and contribution, claiming attempt to non-renew did not comply with South Carolina law and was invalid. The trial court entered summary judgment for insurer, finding its notice of nonrenewal complied with South Carolina law. Because the nonrenewal was proper, the bad faith refusal to pay claim failed as a matter of law.