The bill amends Section 34-14A-19 of the Code of Alabama 1975 to enhance the requirements for residential home builders regarding the disclosure of liability insurance. It mandates that builders must provide written proof of their liability insurance status to homeowners before commencing construction. This written disclosure can either be included as a provision in the original contract or as a separate addendum. Additionally, if the builder confirms they have liability insurance, the disclosure can be signed or initialed by both parties without the need for a witness. However, if the builder does not have liability insurance, the disclosure must be signed by both the builder and the homeowner, and attested by a witness chosen by the homeowner.

The bill also introduces penalties for non-compliance, stating that failure to adhere to these disclosure requirements constitutes a violation of the chapter and is subject to punishment by the board as outlined in Section 34-14A-8. The act is set to take effect on October 1, 2026. Notably, the bill deletes the previous requirement for a witness signature when the builder has liability insurance, streamlining the process for that scenario.

Statutes affected:
Introduced: 34-14A-19, 34-14A-19
Enrolled: 34-14A-19, 34-14A-19