SB235 Alabama 2018 Session

Summary

Primary Sponsor

Rusty Glover

Republican

Session

Regular Session 2018

Title

Insurance contracts, homeowners, discounts for wind mitigation, evidence of certification in lieu of construction records, Secs. 27-31D-1, 27-31D-2 am'd.

Summary

SB 235 changes wind-mitigation premium discounts to require evidence of IBHS certification rather than construction records for IBHS-certified homes.

What This Bill Does

It removes the requirement that insured homeowners submit copies of construction records to qualify for wind-resistance premium discounts on IBHS-certified properties and replaces it with a requirement to provide evidence of IBHS certification. Certification must be obtained through IBHS standards (FFSLS or FCS) or building-code equivalents, verified by IBHS-certified inspectors or licensed building inspectors. Insurers must verify the certification evidence before applying the discount, keep audit-friendly records, and file actuarially justified rating plans for these adjustments; the discount applies to the wind portion of the premium (or the total premium if wind is not separated).

Who It Affects

• Homeowners with insurable property in Alabama that is IBHS-certified or meets the specified fortified standards; they may receive wind-mitigation premium discounts by presenting evidence of IBHS certification instead of construction-records.
• Insurance companies writing wind coverage in Alabama; they must accept evidence of IBHS certification, verify it, and apply the appropriate discount, while maintaining records and filing actuarially justified rating plans.
• IBHS-certified inspectors and licensed building inspectors; they perform the inspections and issue certification that serves as proof for the discount.

Key Provisions

• Amends Sections 27-31D-1 and 27-31D-2 to remove the need for insureds to submit copies of construction records to qualify for IBHS-based discounts; evidence of IBHS certification becomes sufficient.
• For IBHS-certified properties, certification must be documented by an IBHS-certified inspector (or Fortified standards inspector) and the insurer may grant the discount only after this evidence is presented.
• Owners must maintain certification records and related construction documents, which are subject to audit by the Commissioner; copies must be presented to the insurer before the adjustment becomes effective.
• Insurers must file actuarially justified rating plans for these wind-related adjustments; the discount applies to the wind portion of the premium (or the total premium if wind is not separated) and insurers may offer additional mitigation adjustments.
• The act becomes effective immediately after governor's approval.

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