SB398 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

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

Requires homeowners' insurance carriers to disclose the actual cost of each coverage item in the annual renewal package, shown per $1,000 of coverage and as a total cost.

What This Bill Does

If enacted, the bill would require every homeowner's policy renewal to include a clear written breakdown of costs for each coverage type, expressed as both a rate per $1,000 and the actual total cost. It may be accompanied by a standard form created by the Insurance Commissioner. The act covers typical homes as well as mobile and manufactured homes and becomes effective on the first day of the third month after it becomes law.

Who It Affects

• Homeowners with homeowner's insurance policies will receive a detailed, itemized cost disclosure for each coverage type at renewal.
• Insurance carriers that issue homeowner's policies must include the disclosure in the renewal package and use the specified cost format.

Key Provisions

• Requires annual renewal disclosures to show the actual costs of each coverage item, expressed as rate per $1,000 of coverage and as total cost.
• Provides an example format showing costs for wind, fire, theft, and liability coverage with a total premium.
• Expands the definition of 'homeowner's policy' to include traditional, mobile, and manufactured homes.
• Authorizes the Insurance Commissioner to adopt a standard form for the disclosures.
• Establishes the act's effective date as the first day of the third month after passage into 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