Sheet 2 of 50 · AL

Home warranty rules in Alabama

What the trade sells as a home warranty is, in law, a service contract: a paid promise to repair or replace named home systems and appliances. Alabama's statute calls it a "service contract". It is not a builder's or manufacturer's warranty and it is not homeowners insurance; the contract you receive governs.

Facts read on state pages; sheet drawn October 16, 2026.

On file with the state

Regulator

Alabama Department of Insurance

Statute or program

Ala. Code 8-32-1 et seq. (Title 8, Chapter 32, Service Contracts)

The statute's word

service contract

Regime

companies register or file with the state

Roster

not confirmed in this build

Roster as of

no list, so no date

The rules, in plain words

Anyone selling service contracts must register with the Commissioner of Insurance; a numbered registration certificate is issued, registration fee $264 Source.
The provider application lists Home Warranties/Service Contracts as a contract type offered under Chapter 32 Source.
Providers must carry reimbursement insurance, or keep a funded reserve plus a security deposit of at least $25,000, or show $100 million net worth (Section 8-32-3(f)) Source.

The roster

No roster of home service contract companies published by Alabama could be confirmed in this build. If the state starts one, this sheet will print it as the state's own list on its own date. Registration, where a state keeps it, is not a quality rating.

Before you sign, in any state

Ask for the full contract, not the brochure, and read the exclusions page first.
Find the waiting period and the service call fee in the contract itself.
Find the company that pays claims (the obligor) by name, and check that name on the state list if there is one.
Note the cancellation terms and how a refund is figured.

Sources for this sheet

Read the method on how the sheets are made. Corrections go to the publisher and are dated on the sheet.