Proposed Legislation Affecting Property Insurers in Alabama

Ahead of Alabama’s legislative session which begins on February 6, 2024, Representative Chip Brown pre-filed House Bill 8 proposing legislation restricting insurers’ ability to cancel, non-renew or restrict property coverage:

• Insurers must provide persons insured under property insurance policies at least 90 days prior written notice of a policy cancellation, nonrenewal, or coverage restriction.
• Policy cancellation, nonrenewal, or reduction of coverage by an insurer is ineffective until at least 90 days after completion of repairs to the property if the damages were related to a hurricane, wind loss from a natural disaster, or a public health emergency.
• If the property is damaged by any covered peril unrelated to a hurricane, wind loss from a natural disaster, or public health emergency, policy cancellation, nonrenewal, or reduction in coverage is ineffective until the date repairs to the property are completed or one year after the insurer issues the final claim payment—whichever event occurs first.
• The proposed legislation does not apply to the cancellation of a policy for nonpayment of a premium unless there is a named creditor loss payee on the policy. In that situation, cancellation is not effective until the insurer delivers written notice to the named insured and creditor loss payee consistent with delivery of notice requirements in the policy but not less than 10 days prior to the effective date of the proposed cancellation.

I’ll be keeping an eye on this proposed Bill as it makes its way through the legislative process. Updates to follow.

Jansen Voss has developed a diverse defense litigation and appellate practice in both state and federal courts in Alabama and Mississippi. He represents a wide range of businesses, governmental entities, and individuals in complex personal injury and wrongful death lawsuits, as well as business disputes and breach of contract matters.

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