House Bill 615 Alabama 2026 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2026 Regular Session

Title

Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance

Summary

HB615 would require catastrophe savings accounts for Alabama homeowners to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance.

What This Bill Does

If enacted, the bill would define catastrophe savings accounts and require them to be held in Alabama-based financial institutions with approval from the Commissioner of Insurance. The accounts could be used to cover Qualified Catastrophe Expenses, including deductibles for hurricane or flood damage, costs of a Fortified endorsement, and mitigation expenses like reroofing or related evaluations. Each taxpayer may have only one such account and must label it accordingly. The measure applies to tax years beginning in 2027, with the act taking effect on October 1, 2026.

Who It Affects

• Alabama state income taxpayers who own residential property and would establish a catastrophe savings account to cover eligible expenses.
• Alabama-based banks, credit unions, and veteran-related financial institutions that would hold and manage catastrophe savings accounts.
• The Alabama Commissioner of Insurance, who must approve catastrophe savings accounts.

Key Provisions

• Defines a catastrophe savings account as a regular savings or money market account held at an Alabama bank, credit union, or veteran-related financial institution, labeled as a catastrophe savings account to cover Qualified Catastrophe Expenses.
• Qualified Catastrophe Expenses include (i) insurance deductibles for hurricane, rising floodwaters, or other catastrophic windstorm damage; (ii) annual cost of a Fortified endorsement; (iii) costs of mitigation actions (e.g., reroofing, evaluation services) to reduce hurricane/windstorm risk.
• Each eligible taxpayer may establish only one catastrophe savings account and must designate its purpose to cover Qualified Catastrophe Expenses.
• Accounts must be held in Alabama banks, credit unions, or veteran-related financial institutions and require approval by the Commissioner of Insurance.
• Windstorm Event is defined to include wind, cyclones, hurricanes, tornadoes, high winds, hail, and related perils obtainable through specific coverage.
• The act applies to tax years beginning on or after January 1, 2027, with an effective date of October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 13, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance