Property Insurance Bill Passes Senate Committee

Property Insurance Bill Passes Senate Committee

Last Thursday, SB 235, sponsored by Sen. Rusty Glover (R-Semmes), received a unanimous favorable report from the Senate Committee on Banking & Insurance with a vote of 7-0. 

Under existing law, property insurance companies must provide premium discounts to property owners who retrofit their homes or businesses up to certain wind resistance standards, such as those outlined by the Insurance Institute for Business & Home Safety (IBHS).  The discounts, which are intended to provide an incentive to property owners to undergo such mitigation work, would apply only to the wind portion of a property owner’s insurance premium.  SB 235 would allow IBHS certification to serve as sufficient documentation for the insurer that wind mitigation work has been completed on the property.  No other documentation would be necessary. The Alabama Department of Insurance agrees that the IBHS certification should satisfy an insurer’s need proof of certified inspected work.

Alabama REALTORS® has worked with stakeholders on insurance reform for many years and supports this legislation.

SB 235 now moves to the Senate floor for consideration.

HB 279, the House companion bill sponsored by Rep. Davis (R-Daphne), has already passed the House Committee on Insurance and is currently waiting to go before the full House for a vote.