AL HB106

Expands allowable uses of catastrophe savings accounts to include annual costs of FORTIFIED insurance endorsements and mitigation actions that reduce hurricane, flood, or windstorm damage risk (including reroofing and evaluation services for FORTIFIED designation).

Increases contribution caps for individuals with insurance deductibles greater than $1,000 to the lesser of $15,000 or twice the qualified deductible, plus up to $15,000 for other qualified catastrophe expenses.

Allows self-insured individuals who forego property insurance to contribute up to $250,000 to catastrophe savings accounts, not to exceed their home's value.

Maintains existing protections including tax deductions for contributions, exemption of account interest from state income tax, and protection from attachment or legal process.

Applies to tax years beginning January 1, 2026, with effective date of October 1, 2025; passed unanimously by House (101-0).