HB118 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to home inspectors; to add Section 34-14B-11 to the Code of Alabama 1975, to provide a limitation period on actions against licensed home inspectors; and to amend Section 34-14B-3, Code of Alabama 1975, to provide legislative intent.

Summary

This bill sets a time limit for lawsuits against licensed Alabama home inspectors and updates licensure requirements, including insurance and qualifications.

What This Bill Does

It creates a two-year statute of limitations for civil actions against licensed home inspectors for defects in inspections or reports, property damage, or injuries caused by defects. It also imposes a seven-year outer cap after the inspection report delivery, with a knowledge exception if the inspector knew of a defect and failed to disclose. It establishes when a claim accrues (discovery rules) and applies to all related claims, while clarifying that current contracts limiting liability may still be valid. It adds new licensure requirements—minimum liability and errors-and-omissions insurance and specified qualifications—and makes licensure information public, with the act taking effect a few months after passage.

Who It Affects

• Licensed home inspectors in Alabama would be subject to a defined two-year limit on actions, a seven-year outer cap, discovery rules, and new insurance and qualification requirements.
• People who hire home inspectors (homeowners, property owners, and related parties) and their insurers would be affected by the new limits on when lawsuits can be filed and by the new licensure insurance requirements, plus public access to licensure information.

Key Provisions

• Adds 34-14B-11 establishing a two-year statute of limitations for actions against a licensed home inspector for defects in the inspection, the report, property damage caused by defects, or injuries resulting from defects.
• Introduces a seven-year outside limit after delivery of the home inspection report, with an exception if the inspector knew of the defect and failed to disclose prior to expiry.
• Specifies accrual rules: claims arise when damage or injury is first discovered or should have been discovered with reasonable diligence, including latent injuries; cannot be extended as a continuous wrong.
• Extends application to various kinds of actions and notes it follows standard statute-of-limitations calculations; does not revive actions barred under existing law.
• Amends 34-14B-3 to require licensure applicants to provide insurance (public liability and property damage) with specified minimum limits and errors-and-omissions coverage, and to meet certain qualifications (ASHI or equivalent, or other approved certifications; or education/experience with 100 inspections), with renewals not requiring duplicate proof.
• Public records requirement: license application information becomes public.
• Establishes effective date: act takes effect on the first day of the third month after passage.
• States legislative intent that requiring insurance does not disfavor contracts limiting liability.

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; statute of limitations period, provided; legislative intent, provided