"Floridians know only too well the impact a natural disaster can have on a family's budget. But this problem isn't endemic to Florida alone, it's happening across the nation, from fires and earthquakes in the West to flooding in the Northeast, thousands of Americans a year struggle to recover from the destruction wrought upon them. Catastrophe Savings Accounts would provide another tool for Americans who'd like to prepare their family for future hurricanes or other natural disasters," said Rep. Wasserman Schultz.
"Florida has recently experienced back-to back record setting hurricane seasons coupled with unexpected devastating tornadoes. This legislation will put the power in the people's hands and encourage them to save and prepare for future disasters. In addition to high insurance costs and lack of insurance availability, incredibly high deductibles have hurt Floridians. Since the savings is tax-free, Floridians get equitable tax treatment since they use pre-tax dollars to fix damaged property.
"Addressing disaster relief for Florida's families is a bipartisan issue and I believe Catastrophe Savings Accounts are an excellent vehicle to empower homeowners and encourage personal responsibility and preparation," said Feeney.
Structured in the same manner as Health Savings Accounts, a catastrophe tax-free savings account could be opened to cover current and future catastrophe-related expenses. The money can be withdrawn to cover qualified disaster expenses tax-free. Qualified expenses will include: deductibles, uninsured losses, flood damage and structural upgrades for future storms. Upon retirement, the money may be removed from the account penalty-free.
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