AL HB275

Establishes a statutory definition of "replacement cost" for dwelling coverage under Alabama Administrative Code Chapter 482-1-150 as the amount needed to replace or repair damages with materials of similar kind and quality.

Requires quality factors to be incorporated into replacement cost determinations, including reliability, durability, performance, safety, and conformance to specifications of the damaged materials being replaced.

Directs the Commissioner of Insurance to revise department rules as necessary to comply with the new definition no later than January 1, 2026.

Becomes effective on July 1, 2025.