SB397 Alabama 2015 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2015

Title

Condominiums and attached housing, property insurance at 150 percent of actual value required and liability insurance covering common areas, required

Summary

SB397 would require condo or attached-housing owners to carry minimum insurance of 150% of the property's value for property coverage and liability coverage for common elements, effective January 1, 2016.

What This Bill Does

If enacted, owners of condominiums or attached housing must maintain property insurance that covers all typical risks and totals at least 150% of the property's actual cash value after deductibles. They must also carry liability insurance, including medical payments, that covers death, bodily injury, and property damage arising from the use, ownership, or maintenance of any common element. The rule applies to individual owners and becomes effective on January 1, 2016.

Who It Affects

• Condominium or attached-housing owners: must obtain and maintain property insurance at a minimum of 150% of the property's actual cash value and liability insurance covering common elements.
• Insurance providers/agents: would need to issue and underwrite policies that meet these minimum coverage requirements.

Key Provisions

• Property insurance requirement: not less than 150% of the actual cash value of the insured property, after applying any deductible, and covering all risks of direct physical loss commonly insured against.
• Liability insurance requirement: includes medical payments and covers all occurrences commonly insured against for death, bodily injury, and property damage arising from the use, ownership, or maintenance of any common element of the housing; effective January 1, 2016.

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