HB373 Alabama 2023 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2023

Title

Relating to insurance; to limit the number of times an insurer may apply a separate deductible to a homeowner's or a commercial property owner's named storm or hurricane insurance policy.

Summary

HB373 would limit the use of a separate deductible for named storm or hurricane losses on homeowners and commercial property policies to once per hurricane season, with rules for applying any remaining deductible to later storms in the same year.

What This Bill Does

If enacted, the bill would cap a separate deductible for named storms or hurricanes to one time per hurricane season for policies issued or renewed on or after October 1, 2023. If multiple named storms occur in a year, insurers may apply any remaining amount of the separate deductible to subsequent storms or to the deductible that applies to all perils, whichever is greater, and they may require policyholders to keep records to support these deductions. The changes apply to both homeowners (one- or two-family owner-occupied homes) and commercial property policies, and the act becomes effective immediately after governor approval.

Who It Affects

• Homeowners with one- or two-family owner-occupied policies (fire and allied lines) that cover named storms or hurricanes; their separate deductible is capped to one time per hurricane season and may have remaining deductible applied to later storms if needed.
• Commercial property policyholders (including commercial multi-peril policies); their separate deductible for named storms or hurricanes is similarly capped, with potential for remaining deductible to be used on later storms within the same year.

Key Provisions

• Defines hurricane, named storm, and separate deductible for clarity.
• Limit: any separate deductible for named storm or hurricane losses may be applied only once per hurricane season (and on an annual basis within the calendar year for multiple storms), across policies issued or renewed on/after Oct 1, 2023.
• If more than one named storm occurs in a year, insurers may apply the remaining deductible to subsequent storms or to the deductible that applies to all perils other than named storms, whichever is greater.
• Insurers may require policyholders to keep receipts or records of losses to apply them to later named-storm claims.
• Effective date: immediately following passage and governor approval.

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

Subjects

Insurance, homeowners and commercial property insurance deductibles, limits number of required separate deductibles.