SB69 Alabama 2022 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2022

Title

Home inspectors, contractual limitations of liability, not prohibited under certain conditions, Secs. 34-14B-2, 34-14B-3, 34-14B-4, 34-14B-4.1, 34-14B-5, 34-14B-6, 34-14B-8, 34-14B-9, 34-14B-10 am'd.

Summary

SB69 would let home inspectors use contractual limits on liability with customers if minimum insurance requirements are met, and would update agency names and related rules.

What This Bill Does

It updates licensure requirements for home inspectors, including minimum liability and errors-and-omissions insurance. It clarifies that contractual liability limits between inspectors and customers are allowed if they comply with the insurance minimums. It updates terminology from Building Commission to Construction Management Division and makes other non-substantive style updates. It creates the Alabama Home Inspectors Registration Fund, sets a $300 annual fee, and establishes enforcement provisions including suspension if insurance lapses and a Class A misdemeanor for unlicensed practice.

Who It Affects

• Home inspectors and applicants: must obtain minimum liability and E&O insurance, meet licensure requirements (including exams), pay fees, and follow enforcement rules.
• Consumers and property owners who hire home inspectors: may see liability limits allowed in contracts, but their inspectors must carry the specified insurance and be licensed.

Key Provisions

• Allows contractual limitations of liability between home inspectors and customers, provided the limits meet the minimum insurance requirements.
• Sets minimum insurance requirements: at least $20,000 property damage coverage; $50,000 per person; $100,000 aggregate; plus evidence of errors-and-omissions coverage.
• Requires licensure applicants to provide proof of insurance and pass a written exam on Standards of Practice and Code of Ethics and knowledge of home inspections.
• Imposes a $300 annual licensure/renewal fee, with possible adjustments to cover administrative costs; funds go to the Alabama Home Inspectors Registration Fund.
• Creates the Alabama Home Inspectors Registration Fund to receive all related revenues and requires funds to be used to administer the act.
• Requires notification to the Construction Management Division if insurance coverage ceases, with licensure suspended until coverage is reinstated; insurers must notify the Division of policy cancellations.
• Defines penalties for practicing as a home inspector without licensure (Class A misdemeanor) and prevents unlicensed individuals from enforcing contracts for home inspections.
• Provides for separate licensure and certificates for EIFS inspectors with specific requirements.
• Renames and updates references from Building Commission to Construction Management Division and updates related definitions and language.

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

Subjects

Home Inspectors