The Rental Home Marketplace Guarantees Act establishes regulations for rental home marketplace guarantees in Alabama, defining key terms such as "provider," "platform contract holder," and "rental home marketplace." The act mandates that providers must make guarantee terms available on their websites and register with the Alabama Commissioner of Insurance by March 1, 2027. Additionally, providers are required to obtain a reimbursement insurance policy to cover liabilities under the guarantees. The act clarifies that rental home marketplace guarantees do not constitute insurance and outlines the necessary disclosures that must be included in the guarantees, such as a statement indicating that they are not insurance contracts.

The act grants the Commissioner of Insurance the authority to investigate providers for compliance and enforce regulations, including the ability to impose civil penalties for violations. Providers found in violation may face penalties of up to $500 per violation, with a cap of $10,000 for similar violations. The Commissioner can also seek injunctions against providers for non-compliance. The act is set to take effect on October 1, 2026, and includes provisions for the adoption of regulations to implement its requirements.