Georgia Launches Catastrophe Savings Accounts to Offset Rising Disaster Costs

Georgia has enacted House Bill 511 to establish catastrophe savings accounts for homeowners to manage rising disaster-related costs. These accounts function like health savings accounts, allowing tax-deductible deposits that grow tax-free at the state level and can be accessed for insurance deductibles or repairs after a governor-declared disaster. This initiative addresses increasing expenses from hurricanes, floods, and tornadoes and helps fill insurance coverage gaps, especially in high-risk areas. The law aims to enable homeowners to save specifically for disaster recovery, providing more financial flexibility and encouraging higher deductibles to reduce insurance premiums. The program is unique, as Georgia is among a few states implementing such a tax-advantaged solution. It will take effect on January 1, allowing residents time to prepare, although concerns remain regarding support for renters or those unable to save.