HB401 Alabama 2021 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2021

Title

Home inspectors, limitations period or liability, provided, Sec. 34-14B-11 added; Sec. 34-14B-3 am'd.

Summary

HB401 would establish a two-year statute of limitations for lawsuits against licensed home inspectors, set a seven-year outer cap with a knowledge-based exception, and require licensure applicants to carry specified liability and errors-and-omissions insurance along with certain qualifications, while clarifying that insurance requirements do not prohibit liability-limiting contracts.

What This Bill Does

It creates a two-year deadline to sue a licensed home inspector for defects in the inspection or report, property damage, or injuries caused by the inspection. It also imposes a seven-year cap after the report is delivered, with an exception if the inspector knew about the defect and failed to disclose it; the claim accrues at discovery. The bill requires licensure applicants to provide identifying information, proof of public liability and property damage insurance with specified minimum limits, and errors-and-omissions insurance, plus defined professional qualifications. It clarifies that requiring insurance does not express public policy against liability-limiting contracts and sets the act’s effective date and applicability.

Who It Affects

• Licensed home inspectors in Alabama would face new time limits to be sued, insurance and information requirements to obtain or renew licensure, and defined qualification standards.
• Homebuyers and property owners who hire home inspectors would have clearer time frames for bringing claims and would benefit from insurers' coverage requirements for inspectors.

Key Provisions

• Adds §34-14B-11 establishing a two-year limitations period for actions against licensed home inspectors for defects in inspection/report, property damage, or injury arising from the inspection.
• Imposes a seven-year cap after the delivery of the inspection report, with an exception if the inspector had actual knowledge of the defect and failed to disclose before expiration.
• Defines that the cause of action accrues at discovery (or when discoverable) and cannot be extended as a continuous wrong, applying to all types of actions and demands related to home inspections.
• Amends §34-14B-3 to require licensure applicants to provide identifying information, proof of public liability and property damage insurance with specified minimum limits, and errors-and-omissions insurance, plus approved professional qualifications.
• States that the insurance requirement does not express policy disfavoring contractual limitations of liability between inspectors and customers.
• Sets effective date as the first day of the third month after governor approval and applies to home inspections performed on or after that date.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Professions and Businesses