SB215 • 2026

Home Builders Licensure Board; proof of liability insurance, signature and attestation requirements of required disclosures, further provided

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Melson
Last action: 2026-03-31
Official status: Enacted
Effective date: 2026-10-01

Plain English Breakdown

The effective date is October 1, 2026.

New Rules for Home Builder Insurance Disclosures

This law changes how home builders in Alabama must tell homeowners about their liability insurance and who needs to sign that notice.

What This Bill Does

Allows the written statement about insurance to be part of the main contract or a separate addendum.
Requires both the builder and homeowner to sign or initial the document if the builder has liability insurance, without needing a witness.
Allows signatures on these documents to be done electronically when the builder has liability insurance.
Requires a witness selected by the homeowner to attest to the signature if the builder does not have liability insurance.

Who It Names or Affects

Residential home builders in Alabama
Homeowners who are hiring builders for new homes

Limits and Unknowns

The law states that failing to follow these rules is a violation punishable by the board, but it does not list specific penalties.
The text refers to another section of the code for details on how violations are punished.

Bill History

2026-03-31 Senate
Enacted
2026-03-19 House
Signature Requested
2026-03-19 Senate
Delivered to Governor
2026-03-18 Senate
Enrolled
2026-03-17 House
Motion to Read a Third Time and Pass - Adopted Roll Call 949 (Yeas 105, Nays 0)
2026-03-17 House
Third Reading in Second House (Yeas 105, Nays 0)
2026-03-17 Senate
Ready to Enroll
2026-02-19 House
Read for the Second Time and placed on the Calendar
2026-02-18 House
Reported Out of Committee Second House
2026-02-12 Senate
Motion to Read a Third Time and Pass - Adopted Roll Call 404 (Yeas 31, Nays 0)
2026-02-12 Senate
Third Reading in House of Origin (Yeas 30, Nays 0)
2026-02-12 House
Pending Committee Action in Second House
2026-02-12 House
Read for the first time and referred to the House Committee on Commerce and Small Business
2026-02-05 Senate
Read for the Second Time and placed on the Calendar
2026-02-04 Senate
Reported Out of Committee House of Origin
2026-01-27 Senate
Pending Committee Action in House of Origin
2026-01-27 Senate
Read for the first time and referred to the Senate Committee on Banking and Insurance

Official Summary Text

This act amends Section 34-14A-19, Code of Alabama 1975, to: (1) provide that the written disclosure as to whether a residential home builder has liability insurance before building a home may be an incorporated provision within an original contract or a separate addendum; (2) if the disclosure is that the home builder has liability insurance, require the disclosure to be signed or initialed, including electronically, by the home builder and homeowner without a witness; and (3) if the disclosure is that the home builder does not have liability insurance, require the disclosure be signed by the home builder and homeowner and attested by a witness.

Current Bill Text

Read the full stored bill text

SB215 ENROLLED
Page 0
SB215
NR166JT-2
By Senator Melson
RFD: Banking and Insurance
First Read: 27-Jan-26
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SB215 Enrolled
Page 1
First Read: 27-Jan-26
Enrolled, An Act,
Relating to home building; to amend Section 34-14A-19,
Code of Alabama 1975, to further provide for the requirement
to disclose proof of liability insurance; and to establish
signature and attestation requirements of required disclosures
made prior to construction.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 34-14A-19, Code of Alabama 1975, is
amended to read as follows:
"§34-14A-19
(a) Prior to the commencement of residential home
building by a residential home builder, the residential home
builder shall disclose in writing to the homeowner whether the
residential home builder has obtained and is currently
maintaining liability insurance. The written disclosure
requirement may be satisfied as an incorporated provision
within the original contract or as a separate addendum.
(b)(1) If the disclosure is that the residential home
builder has obtained and is currently maintaining liability
insurance, the incorporated provision may be signed or
initialed, electronically or otherwise, by the residential
home builder and the homeowner without the signature of a
witness.
(2) If the disclosure is that the residential home
builder has not obtained or does not currently maintain
liability insurance, then The the written disclosure shall be
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SB215 Enrolled
Page 2
liability insurance, then The the written disclosure shall be
signed by the residential home builder and the homeowner, and
attested by one witness selected by the homeowner.
(c) Failure of a residential home builder to comply
with this section is a violation of this chapter and
punishable by the board pursuant to Section 34-14A-8."
Section 2. This act shall become effective on October
1, 2026.
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SB215 Enrolled
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1, 2026.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB215
Senate 12-Feb-26
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 17-Mar-26
By: Senator Melson
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