HB405 Alabama 2012 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2012

Title

Insurance, residential roofing contract cancellation prior to midnight of 5th business day, exceptions

Summary

HB405 would let homeowners cancel a residential roofing contract paid with an insurance claim within a defined cancellation window and require specific notice forms and protections for both homeowners and contractors.

What This Bill Does

If passed, the bill allows an insured homeowner to cancel a roofing contract before midnight on the fifth tenth business day after signing if the insurer has notified that all or part of the loss isn’t covered. Contractors must provide bold, clearly worded cancellation rights notices and a detachable Notice of Cancellation form before contract signing. During the insurance-based payment process, contractors may not require payment until the cancellation period ends, except for emergency services that the insured has written acknowledgment to be necessary; contractors cannot enforce non-emergency fees against a homeowner who cancels or represent the homeowner in insurance claims. The act takes effect on the first day of the third month after passage into law.

Who It Affects

• Insured homeowners with residential roofing contracts funded by an insurance claim; they gain a right to cancel within the specified period and must receive the required notices.
• Residential roofing contractors; they must provide mandated notices and forms, and are restricted from collecting non-emergency fees or representing homeowners in insurance claims during the cancellation period.

Key Provisions

• Defines terms: residential real estate (1-4 units), residential roofing contractor, and roof system.
• Allows cancellation before midnight on the fifth tenth business day after signing if the insurer notifies that the claim or contract is not a covered loss; cancellation is in writing to the contractor.
• Requires contractor to furnish a boldface cancellation notice and a detachable Notice of Cancellation form to be attached to the contract.
• If payment may come from insurance proceeds, the contractor cannot require payment from the insured until the cancellation period ends, except for emergency services performed and acknowledged as necessary.
• Prohibits contractors from representing or negotiating insurance claims on behalf of homeowners for roof repairs.
• Effective date is the first day of the third month after the bill is enacted.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance