Georgia Expands Insurance Cancellation Notice and Introduces Catastrophe Savings Accounts

Georgia home insurance policyholders will benefit from a new law that doubles the notice period from 30 to 60 days before insurers can cancel a homeowner's policy.

This change aims to provide additional time for consumers to address issues raised by their insurance companies or find alternative coverage. The legislation was sponsored by State Senator Larry Walker, drawing on his 30 years of experience as an insurance agent. The law responds to an increasing trend of insurance companies dropping customers following major storm events, such as Hurricane Helene, ensuring policyholders are not rushed into coverage changes. Another related law effective next year introduces "catastrophe savings accounts" for homeowners, functioning similarly to health savings accounts but designed to manage storm damage expenses. These accounts allow homeowners to contribute funds, receive tax deductions, and benefit from tax-free interest growth and withdrawals for disaster expenses. The intent is to encourage preparedness through affordable higher deductibles and financial readiness for potential home damages. Early adopters can open these accounts at local banks starting with the 2026 tax year, with contribution limits linked to insurance deductibles. The legislative efforts respond to real consumer challenges, exemplified by cases where homeowners have been dropped despite their properties being in good condition, highlighting the importance of enhanced regulatory protections in the homeowner insurance market.