Licensing Exam Practice Questions And

Alabama Residential Home Builder Licensing Exam Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following is required for a residential home builder in

Alabama to obtain a license?

• Proof of insurance only
• Passing the state licensing exam
• Owning a construction company for 2 years
• Submitting 3 references

Answer: B

Rationale: In Alabama, passing the state licensing exam is mandatory to

ensure that builders meet minimum competency standards.

• / 4

• What is the primary purpose of the Alabama Home Builders Licensure

Board?

• To design building plans
• To enforce building codes directly
• To regulate and license residential home builders
• To sell building materials

Answer: C

Rationale: The board ensures that all residential home builders comply with

state laws and maintains licensing standards.

• According to Alabama law, what is the minimum amount of general

liability insurance required for licensed home builders?

A. $50,000

B. $300,000

C. $500,000

D. $100,000

Answer: B

Rationale: Alabama requires licensed builders to carry a minimum of

$300,000 in general liability coverage to protect clients and contractors.

• Which of the following is considered a “residential building project”

under Alabama law? 2 / 4

• Commercial warehouse
• Single-family homes
• Office complexes
• Industrial plants

Answer: B

Rationale: Residential projects in Alabama include single-family and certain

multi-family homes, not commercial or industrial buildings.

• A contractor in Alabama is required to post what document at the job

site?

• A list of subcontractors
• Building blueprints
• Copy of the license
• Safety inspection certificate

Answer: C

Rationale: Posting the license ensures transparency and confirms that the

work is being performed by a legally licensed builder.

• When is a contractor required to renew their Alabama residential

builder license?

• Every year
• Every 3 years 3 / 4

• Every 2 years
• Every 5 years

Answer: C

Rationale: Alabama requires residential builder licenses to be renewed

biennially, including verification of continuing education.

• Which of the following is considered an “unethical practice” for licensed

builders in Alabama?

• Completing work ahead of schedule
• Misrepresenting material quality
• Providing estimates to clients
• Hiring subcontractors

Answer: B

Rationale: Misrepresenting materials violates Alabama’s professional and

consumer protection laws.

• How many hours of continuing education are required for license

renewal in Alabama?

• 4 hours
• 8 hours
• 12 hours
• 16 hours
• / 4