Effective Dates: 12/28/2023 - Present Previous | Next

TN 132 (08-25)

SI 01130.065 National Flood Insurance Program (NFIP) Payments

A. Background

The NFIP is a Federal program established under the National Flood Insurance Act of 1968. Its purpose is to reduce future flood damage through community floodplain management ordinances and to provide insurance coverage for property owners against potential losses. The Federal Emergency Management Agency (FEMA) administers the NFIP.

B. How to treat an NFIP payment for SSI purposes

Assistance provided under the NFIP for flood mitigation activities with respect to property (e.g. mitigation payments or grants) is not considered income or a resource of the property owner when determining Supplemental Security Income (SSI) eligibility or payment amount. There is no time limit on the resource exclusion of an NFIP payment.

C. How to treat interest earned on an unspent NFIP payment

Interest earned on an unspent NFIP payment is excluded from income (for the policy on Income Treatment–Benefits Payable Beginning July 1, 2004, see SI 00830.500C). However, any interest earned on an NFIP payment that is retained into the month following the month of receipt, is a countable resource.

D. Procedure for initial claims and posteligibility

1. When to develop

When excess resources are causing an individual to be ineligible for SSI and they allege that the resources include unspent NFIP funds, determine if applying this policy permits eligibility for regular or conditional benefits (for information on conditional benefits, see SI 01150.200 through SI 01150.210). If the policy permits eligibility, develop following the instructions in this section.

2. Obtain evidence of an NFIP payment

a. General

Make sure the evidence shows the source, amount, date(s), and intended purpose of the payment received.

b. Individual’s record

Obtain a copy of any evidence the individual has in their possession (e.g. notice of payment or a payment stub). Record the evidence electronically on the Evidence (EVID) screen, Report of Contact, or by faxing documents into the electronic folder (EF) using the Evidence Portal (EP). For information on the retention of paper material after faxing into either the EP or EF, see GN 00301.322.

c. Verification from source

If an individual cannot provide evidence that suffices for a determination, contact the state or community that distributed the flood mitigation assistance to the individual by telephone, if possible. Record the facts on form SSA-5002 Report of Contact.

E. See details

SI 00830.099 Guide to Unearned Income Exclusions

SI 01130.050 Guide to Resources Exclusions

SI 01130.060 Exclusions Under Other Federal Statutes

SI 01130.700 Identifying Excluded Funds That Have Been Commingled with Nonexcluded Funds

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501130065
SI 01130.065 - National Flood Insurance Program (NFIP) Payments - 12/28/2023
Batch run: 09/18/2025
Rev:12/28/2023