HB275 Alabama 2022 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2022

Title

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

Summary

HB275 would require Alabama home inspector licensure applicants to carry specified liability and property damage insurance (plus E&O) and clarifies that this requirement does not disfavor contracts limiting inspector liability.

What This Bill Does

It changes the licensure rules to require applicants to provide proof of public liability and property damage insurance with minimum coverage, plus errors and omissions insurance, and to meet defined professional qualifications. It also adds language stating the insurance requirement should not be read as disfavoring contract-based liability limits between inspectors and customers, and it specifies the information required in the application and that it becomes public record. The act would take effect on the first day of the third month after passage.

Who It Affects

• Prospective home inspector license applicants in Alabama, who must obtain the specified insurance (public liability, property damage, and E&O) and provide the required information and qualifications to apply for licensure.
• Homeowners and other customers who hire home inspectors, who will benefit from clarified policy about liability limits in contracts and the assurance that inspectors carry the required insurance.

Key Provisions

• Amends Section 34-14B-3 to require licensure applicants to provide evidence of public liability and property damage insurance with minimum limits ($20,000 property damage; $50,000 per person; $100,000 aggregate) and Errors and Omissions insurance, with limits/forms set by the Building Commission.
• Adds that the insurance requirement is not intended to express public policy disfavoring contractual liability limitations between home inspectors and customers.
• Requires the application to include: SSN or EIN, business name/address, insurance certificates meeting the stated limits, and proof of professional qualifications from approved bodies or routes.
• States that application information is a public record and sets the act’s effective date as the first day of the third month after passage.

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