AL SB73

Expands catastrophe savings accounts to cover FORTIFIED endorsement costs and mitigation actions (reroofing, evaluation services) in addition to insurance deductibles and uninsured windstorm losses.

Establishes contribution caps: $2,000 plus up to $15,000 for other qualified expenses for deductibles ≤$1,000; up to $15,000 or twice the deductible (whichever is less) plus $15,000 for other expenses for deductibles >$1,000; and $250,000 for self-insured individuals (not to exceed home value).

Defines "Qualified Catastrophe Expenses" to include insurance deductibles, FORTIFIED endorsements, and mitigation costs related to hurricane, floodwater, and catastrophic windstorm events.

Maintains tax benefits: contributions remain deductible for state income tax purposes and interest earnings remain tax-exempt; distributions are tax-free if used for qualified expenses.

Becomes effective October 1, 2025.