HB272 Summary

• Establishes the Alabama Homeowners Bill of Rights Act requiring insurance carriers to provide homeowner policyholders with an outline of policy coverage and standard checklist at time of sale and annually thereafter.

• Grants policyholders 19 specific rights including competitive pricing, readable policies, timely claim payment, cancellation with refund of unearned premiums, access to claim-related documents, fair treatment, and right to reject settlement offers.

• Applies to all homeowners personal lines residential property coverage policies including condominiums, dwelling fire, renters, and mobile home coverage, but excludes creditor-placed and association property coverage.

• Specifies that violations of the act constitute violations of the Unfair Trade Practices Act and may result in suspension or revocation of the insurer's Certificate of Authority or administrative fines.

• Clarifies the act does not create a civil cause of action for individual policyholders and does not expand coverage beyond what the policy provides.