SB62 Alabama 2019 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2019

Title

Consumer protection, roofing, contracts, cancellation of roofing contract further provided, Sec. 8-36-2 am'd.

Summary

SB 62 lets a homeowner cancel a residential roofing contract within five days after the insurer notifies that the claim is not covered or not enough to cover the contract, with protections for notices, payments, and contractor conduct.

What This Bill Does

If passed, it gives insured homeowners a five-day cancellation window after receiving notice from the insurer that all or part of the claim is not a covered loss or won't cover the contract amount. It requires roofing contractors to provide bold, clearly worded cancellation notices and a detachable 'Notice of Cancellation' form before entering the contract, and to handle cancellation notices by mail or email. It also bars contractors from demanding payments during the cancellation period (except for emergency services) and prohibits contractors from representing or negotiating insurance claims on behalf of the owner for roof repairs.

Who It Affects

• Homeowners or insured individuals with a residential roofing contract paid from insurance proceeds, who may cancel within five days of insurer notice about coverage.
• Residential roofing contractors, who must provide required cancellation notices and forms, can only charge for emergency services during the cancellation period, and must not represent the owner in insurance claim negotiations.

Key Provisions

• Allows cancellation within five days after insurer notifies that the claim or contract is not a covered loss or that the covered claim will not cover the contract amount.
• Before entering the contract, the contractor must provide a bold-faced cancellation notice and a detachable 'NOTICE OF CANCELLATION' form with explicit language about the right to cancel.
• Cancellation notice is effective by mail when deposited in the mail, and by electronic mail when sent to the contractor's stated address/email.
• During the cancellation period, the contractor cannot require payment except for emergency services already performed and acknowledged as necessary to prevent damage.
• Any contract provision requiring payment of fees other than emergency services during cancellation is not enforceable against the insured who cancels.
• Contractors may not represent or negotiate on behalf of the owner in connection with the insurance claim for roof repairs.
• The act becomes effective on the first day of the third month after the bill passes and is approved.

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

Subjects

Consumers and Consumer Protection