If your homeowners insurance was recently cancelled, or shot up dramatically, you are not alone. Last year’s historic tornado outbreak left a legacy of higher insurance costs in Alabama, one reason why lawmakers say it’s time to act now.
House Bill 456, also known as the “Catastrophe Savings Account Plan”, is now working its way through the state capitol. The bill’s backers say it will deliver the relief many Alabama homeowners desperately need.
If passed, it would give homeowners tax benefits on money they set aside in personal savings accounts specifically designated for wind and storm damage. Lawmakers said many insurance companies have scaled back and cancelled coverage plans since April 27th, 2011, but tell us out-of-pocket expenses for homeowners won’t be as hefty if the bill passes.
A panel formed by Gov. Robert Bentley has endorsed the Catastrophe Savings Plan. The bill has already passed through committee in both chambers of the legislature, and now awaits a full floor vote. Proponents said similar plans have been passed in other states.