FLOOD INSURANCE and FEMA

FEMA is rewriting the flood maps.

They are trying to make them more accurate.

This will translate into higher rates for a lot of people.

For those getting a loan on their property, they will typically be required to maintain this insurance.  For those without loans, they are able to go without, on personal choice.

The fear is that people simply not get insurance due to the high costs and be at risk of catastrophic losses.

The City of Worcester has announced a program that will help low income earners pay for flood insurance.

a quick link to that:

https://thisweekinworcester.co...

Worcester has a couple sections of the City that typically show up on the flood maps- Green Island (around Crompton Park),  Cambridge street (select sections from Main Street to the Price Chopper and Southbridge st to Quinsigamond ave) and along Beaver Brook Parkway (between Maywood street and Chandler street) 

Typically flood insurance is about $2500/year so essentially an additional $200/month in taxes.

When you purchase in a flood zone keep this in mind.  If Principal and interest at 5%  you should discount the house around $40k in value due to the increased cost.