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Disaster Savings Accounts Bill Introduced in Senate

U.S. Sen. Jim Inhofe (R-Okla.) has introduced the Disaster Savings Accounts Act of 2014 in the Senate, which calls for creating a new tax-preferred savings account that homeowners can use for household fortifications to facilitate natural disaster mitigation and recovery...
February 11, 2014

U.S. Sen. Jim Inhofe (R-Okla.) has introduced the Disaster Savings Accounts (DSA) Act of 2014 in the Senate, which calls for creating a new tax-preferred savings account that homeowners can use for household fortifications to facilitate natural disaster mitigation and recovery.

The legislation would give homeowners the opportunity to contribute up to $5,000 a year to a tax-deductible savings account, with unused funds rolling over each year. The savings can be used to pay for home fortifications such as a safe room, wind resistant windows and doors, or elevating structures; or for recovery expenses to help fill the gap between insurance deductibles and other recovery funds. In the case of accessing the DSA for recovery expenses, the event must be a state or federally declared disaster with uninsured losses totaling at least $3,000.

What It Means to Agents: PIA is fully supportive of legislation that would enhance mitigation, but not legislation to replace private insurance with government programs. Our members believe that natural catastrophe risk should be placed in the insurance market, not on taxpayers.

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