Alabama insurance regulations; to define replacement cost

HB 275 establishes a new statutory definition for "replacement cost" in Alabama insurance policies covering dwellings. It requires insurers to calculate replacement costs based on rebuilding with materials of similar kind **and quality**, specifically including reliability, durability, safety, and adherence to original material specifications - expanding beyond current rules that only considered cost. This directly affects homeowners with dwelling insurance by changing how insurers determine payout amounts for repairs or rebuilds after damage. The bill mandates the Alabama Department of Insurance to update its rules by January 1, 2026, to reflect this definition, effective July 1, 2025.