How much can be deposited in a Catastrophe Savings Account?
If your homeowners’ insurance deductible for your legal residence is $1,000 or less, then you can contribute up to $2,000. You do not have to contribute the entire amount in one year, but the total contributions for all years cannot exceed $2,000. If your deductible for your legal residence is greater than $1,000, then you may contribute an amount equal to twice the amount of your deductible not to exceed $15,000. You do not have to contribute the entire amount in one year, but the total contributions for all years cannot exceed twice your deductible up to $15,000. Example 2. Jane has a $10,000 deductible; she can contribute $15,000 to her Catastrophe Savings Account. Example 3. Sally has a $6,000 deductible; she can contribute $12,000 to her Catastrophe Savings Account. If you self-insure your legal residence, you may contribute up to $250,000 to your Catastrophe Savings Account. However, the amount contributed may not exceed the value of your home. Example 4. Tom self-insures his $10
