GA, MS, HI and LA Adopt Laws to Address General Liability Insurance Crisis
Three states adopt new Notice and Opportunity to Repair laws, several others amend and strengthen existing laws. To date, 24 states have these laws on the books.

New NOR Law in Georgia
In mid-May, Governor Sonny Perdue put his signature on Senate Bill 563, adding Georgia to a long list of states that have Notice and Opportunity to Repair laws. The Georgia law, which requires home owners to give builders a chance to fix construction defects before they are brought into a lawsuit, is an important first step in making general liability insurance more affordable and readily available for builders.

The Home Builders Association of Georgia advocated this bill in conjunction with builder licensing legislation, which was also signed into law last May.

“We promoted these bills as legislation to benefit consumers,” said Ed Phillips, the association's executive officer. He said the new laws will also “help good builders establish a process for resolving defects that is up-front and effective for consumers” and potentially reduce general liability insurance rates for his members.

Mississippi Improves Home Warranty Act
The Home Builders Association of Mississippi also worked this session to improve the state's builder liability climate. Earlier this month, Governor Haley Barbour signed Senate Bill 2638, legislation adding Notice and Opportunity to Repair provisions to the state's Home Warranty Act.

The amended act requires home owners to notify builders when a construction defect is discovered and give them the chance to repair it. The bill also adds mold damage to the state's list of warranty exclusions.

NOR Law Among Several Business-Friendly Measures Signed by Governor
In mid-June, Hawaii became the latest state to adopt a Notice and Opportunity to Repair law. Senate Bill 2358, promoted by the Building Industry Association of Hawaii, was one of eight pro-business laws signed by Governor Linda Lingle during a signing ceremony that the entire Legislature was invited to attend.

The governor called the bills the "building blocks in us building a reputation as a good place to do business" and key in making the state of Hawaii a "fair place to invest."

Louisiana Reduces Structural Defect Warranty Period
On May 21, Louisiana Governor Kathleen Babineaux Blanco signed legislation amending the state's New Home Warranty Act to reduce the warranty period for major structural defects in homes from seven to five years.

The Louisiana Home Builders Association advocated House Bill 401 as a key step in bringing general liability insurance carriers back to the state.

Michelle Shirley, the association's legislative affairs officer, said the new law will help “encourage insurers to return to our market and make general liability insurance more readily available and affordable for our members.”

NOR Legislation Progresses Throughout U.S.
Legislation is active in several other states including:

• Missouri, where new Notice and Opportunity to Repair legislation is awaiting the governor's signature
• Florida, whose bill to enhance the state's existing Notice and Opportunity to Repair law was signed by Governor Jeb Bush in mid June
• Arizona and Alaska, where builders associations in both states successfully pushed legislation to strengthen Notice and Opportunity to Repair laws that have been in place since 2002 and 2003, respectively
• Washington, which capped off a three-year effort last March when Governor Gary Locke signed a bill enhancing the state's current Notice and Opportunity to Repair law and contains special provisions for condominium construction
• California, Illinois, Ohio and Pennsylvania: These states still have bills active in their legislatures. Additional coverage will follow as the bills advance.

For information on a specific bill or law, contact your state lobbyist. NAHB’s Sam Leyvas (800-368-5242 x8326) can answer general questions regarding Notice and Opportunity to Repair legislation. [ return to top ]