Insurance money from Hurricane Helene in checking account - report on FAFSA or wait?

i had something similar happen with flood money last year. we waited to file until after the repairs were done and the $$ was gone from our account. seemed easier than trying to explain the situation later.

You actually don't need to include this insurance money on your FAFSA. According to Federal Student Aid guidelines, insurance settlements that are specifically designated for repairs or replacement of damaged property are not considered as regular assets for FAFSA purposes. They're essentially pass-through funds. However, if you're concerned about verification or questions later, I recommend keeping thorough documentation of: 1. The insurance claim paperwork showing the purpose of the funds 2. Receipts/contracts for the repair work 3. Bank statements showing when the money came in and went out This way, if your FAFSA is selected for verification, you can clearly demonstrate these weren't personal assets but rather designated repair funds.

We had a similar issue with a car insurance payout last year and included it on FAFSA. Got selected for verification and it was a NIGHTMARE trying to explain to the financial aid office why that money shouldn't count against us. So many phone calls with no help.

You should definitely WAIT to file!!!! The FAFSA doesn't care about "why" you have the money - they only see that you have $65k sitting there! The formula will assume that's your money to spend on college and will DESTROY your daughter's aid package!!!! I learned this the hard way when we inherited money right before filing - it ruined our SAI score even though we used it to pay off medical debt!

In my experience working with financial aid offices, you have two reasonable options: 1. File now and document the funds as designated for home repairs (get a statement from your insurance company clearly stating the purpose of the funds). If selected for verification, submit this documentation. 2. Pay for the repairs first, then file when the money is out of your account. Just be mindful of your state's FAFSA priority deadlines - some states distribute aid on a first-come, first-served basis. Waiting too long could affect state aid eligibility, which is separate from federal aid calculation.

I'm going through something similar right now with insurance money from Ian (still dealing with repairs 2 years later...ugh). Called the Federal Student Aid helpline to ask about this specifically. Spent literally 4 hours on hold over 3 days before finally getting through. The agent confirmed insurance settlements for property damage don't count as assets for FAFSA purposes as long as you're using them for the intended purpose. But DOCUMENT EVERYTHING in case of verification!

can u just move the insurance money to a different account until after u file fafsa? thats what my cousin did with some money they got from a lawsuit right b4 filing

Thanks everyone for the helpful advice! After reading through your comments, I'm going to: 1. Check our state's priority FAFSA deadline 2. Get formal documentation from our insurance company about the purpose of the funds 3. Keep all contractor estimates and payment receipts 4. File our FAFSA now with proper documentation rather than waiting Great to know we don't have to include these funds as assets since they're designated for repairs. Really appreciate all the insights!

Smart plan! Just wanted to add - when you get that documentation from your insurance company, make sure it specifically mentions that the funds are for "property restoration" or "damage repair" rather than just general compensation. The more specific the language, the clearer it'll be during verification if needed. Also, if you're doing the repairs in phases over several months, keep a timeline showing when each payment goes out so there's a clear paper trail. Good luck with both the FAFSA and the home repairs!