Christopher Dowling and Flor Maria Dowling, Appellants, v. Home Buyers Warranty Corporation, II, a Colorado Corporation, Respondent, 303 S.C. 295

Summary

Shortly after moving into a new home, the purchasers discovered a flooding problem. An investigation revealed that their house was built below the minimum required elevation. They filed a claim for the cost of rebuilding the home at the proper elevation. The corporation refused the claim. Pursuant to the policy, the parties submitted to arbitration, which resulted in a finding against coverage. The contract provided for "limited warranty and insurance coverage" and protected consumers for defects in the specified home if the builder did not perform his warranty obligations. The corporation argued that improper elevation was not specifically listed in the contract as a covered deficiency. The court overturned the grant of summary judgment on the bad faith claim. It was uncontested that the home's elevation was not in accordance with the standard practice of the construction industry. However, the court found a genuine dispute regarding whether the corporation had any reasonable basis to...