AL HB296

Establishes the Rental Home Marketplace Guarantees Act to regulate damage protection guarantees offered by online rental platforms (like Airbnb) that reimburse property owners for renter-caused damages

Requires providers to register with the Alabama Commissioner of Insurance by March 1, 2027, and obtain reimbursement insurance policies from authorized insurers by July 1, 2027

Declares rental home marketplace guarantees are not insurance contracts and exempts them from most state insurance laws, while requiring clear written terms and disclosure statements

Allows platform users to file claims directly against the backing insurance company if a provider fails to perform within 180 days after proof of loss is filed

Authorizes civil penalties up to $500 per violation and $10,000 aggregate for similar violations, with enforcement by the Insurance Commissioner; effective October 1, 2026