Hurricane Savings Accounts
Florida's most important statutory exemptions, such as salary for head of household, annuities, and retirement funds, have been in place for a long time. From time to time the legislature adds additional, relatively small, categories of protected assets. A recent addition to Florida's list of assets protected from creditors are "hurricane savings accounts" now protected under Florida statute 222.22 4 (b). The statute defines a hurricane savings account as an account owned by the owner of homestead property up to twice the amount of an insurance deductible or other uninsured portion of the risk of loss from a hurricane, windstorm, or flood. The statutory protection is available only when the federal government provides tax-exempt or tax-deferred status to such accounts.
I am not completely clear on how these accounts work. I have called many institutions and they have never heard of hurricane savings account. How does one go about opening one? Can I just open up a savings accout and deem it as a hurricane savings account and use it strictly to pay for deductibles and losses as set forth in the statute. Any help would be greatly appreciated.