REALITY: A number of states have implemented a variety of proactive programs to address their unique natural catastrophe exposures and assist their citizens. In Congress, proactive bills are pending that direct federal assistance to consumers in the coastal regions.

• Consumer Catastrophe Savings Account

The account may be established by a policyholder for residential property to cover insurance deductibles under insurance polices for the taxpayer’s residence that covers rising floodwaters or catastrophic windstorm events.