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 bill does not provide specific details on enforcement mechanisms or penalties for non-compliance, leaving these aspects uncertain.

Home Builders Licensure Board; Insurance Disclosure Requirements

This law changes how home builders must disclose their liability insurance status to homeowners before starting construction on a new home.

What This Bill Does

Requires home builders to provide written disclosure about whether they have liability insurance before beginning residential home building.
If the builder has liability insurance, the disclosure can be signed or initialed by both the builder and homeowner without needing a witness.
If the builder does not have liability insurance, the disclosure must be signed by both the builder and homeowner and attested to by a witness chosen by the homeowner.

Who It Names or Affects

Home builders who construct residential homes in Alabama.
Homeowners who are building new houses with home builders.

Terms To Know

Liability insurance: Insurance that protects a person or business from being sued for damages or injuries caused to others.

Limits and Unknowns

The law does not specify the consequences if a builder fails to comply with these requirements.
It is unclear how the Home Builders Licensure Board will enforce this new rule.

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
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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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