Ala. Admin. Code r. 535-X-15 § 535-X-15-.03
Bonding And Insurance Requirements
Operative Text
To obtain licensure, manufacturers, retailers, and installers must hold a valid bond and general liability insurance coverage as follows: Who *Bond Insurance Manufacturer 25K per License Facility or a minimum of 100K 1M Retailer 25K for 1 to 3 Facilities 50K for more than 3 500K Installer 20K 100K *After a periodic review of valid claims, the Comission may decrease or increase the bond requirements.
Alabama Administrative Code r. 535-X-15 § 535-X-15-.03 establishes the bonding and insurance requirements that manufactured housing manufacturers, retailers, and installers must satisfy before receiving a license in Alabama. Manufacturers must carry a bond of at least $25,000 per licensed facility (or a minimum of $100,000) and $1 million in general liability insurance; retailers must hold a $25,000 bond for one to three facilities or $50,000 for more than three, plus $500,000 in insurance; and installers must carry a $20,000 bond and $100,000 in insurance. The Alabama Manufactured Housing Commission retains authority to adjust bond amounts up or down following a periodic review of valid claims.
Plain English — not legal advice.
Property owners or managers who operate as manufactured housing manufacturers, retailers, or installers in Alabama must secure and maintain the bonds and insurance coverage specified in r. 535-X-15 § 535-X-15-.03 before licensure is granted. Compliant operators typically keep documentation of their current bond and general liability policy on file and update those instruments whenever their number of licensed facilities changes or when the Commission revises bond thresholds after a periodic review. Allowing a bond or insurance policy to lapse can jeopardize an active license, so operators generally track renewal dates carefully.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you are purchasing or have purchased a manufactured home in Alabama, r. 535-X-15 § 535-X-15-.03 requires that the manufacturer, retailer, or installer involved in your transaction hold a valid bond and general liability insurance policy as a condition of their license. These financial instruments exist in part to provide a potential avenue for recourse if a licensed party fails to meet its obligations. Tenants or buyers who believe a manufacturer, retailer, or installer may not be properly bonded or insured can contact the Alabama Manufactured Housing Commission directly, or reach out to a tenant-rights or consumer-protection organization for guidance on available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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