SB3 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty Glover

Session

Regular Session 2011

Title

Homeowners insurance, carriers required to disclose actual costs of each item of coverage in annual renewal policy package, both as cost per $1,000 coverage and actual cost of each item of coverage, Homeowner's Insurance Cost Transparency Act

Summary

SB3 would require homeowners' insurers to clearly disclose the cost of each coverage item on the annual renewal, showing both per-$1,000 costs and total costs.

What This Bill Does

If enacted, each homeowner's insurance carrier must include with the renewal package a clear written disclosure of the actual costs for every coverage item in the policy. The costs must be shown as the rate per $1,000 of coverage and as the actual total cost for that item. The act also allows the Insurance Commissioner to adopt a standard form for these disclosures and defines what counts as a homeowner's policy.

Who It Affects

• Homeowners insured under Alabama homeowner's policies will receive renewal disclosures showing costs for each coverage item.
• Insurance carriers offering homeowner's policies must provide the disclosures with renewal packages and follow a standard form adopted by the Insurance Commissioner.

Key Provisions

• Disclosures must be included with each annual renewal package and show the actual costs of each coverage item, expressed as a rate per $1,000 of coverage and as the actual total cost.
• The term 'homeowner's policy' is defined to cover traditional single-family or multi-family dwellings, mobile homes, and manufactured homes.
• The Insurance Commissioner is authorized to adopt a standard disclosure form for these cost disclosures.
• The act becomes effective on the first day of the third month after it is passed and signed by the Governor (or otherwise law).

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance