MS to Set Up Insurance Catastrophe Savings Account

Mississippi is in the process of setting up an insurance catastrophe savings account. The account is meant to help pay the insurance deductible for a policy that covers a taxpayer’s residence for hurricane, flood, windstorm, or other catastrophic event damage. Putting money into the catastrophe savings account is completely optional and would not be counted as part of a taxpayer’s gross income.

Representative Scott DeLano (R), District 117, says, “That will allow them to have a larger deductible on their insurance policies. That will thereby reduce the total amount of premium that is paid for their windstorm coverage, and we think that’s going to be helpful to some people, maybe not for all, but it’s just another tool that we’re going to add to the toolbox.”

Although the bill is designed for Coast residents, it will apply to any area of the state. The bill has passed the House and is still moving through the state Senate.