No final decisions yet anyway.

You made the right decision!!!

@Victor Ramirez welcome and congrats on making the decision--it really is a big step!

Don't negate the corporate decision-making process as well. 

I feel that the flood insurance cost of $120/mo doesn't seem prohibitive to me but I am out of state and was curious if on a local level this has any stigma or large bearing in a buyer's decision (other than the obvious cost consideration)? 

I also implore you take measured and strategic decisions. 

It's nuanced, but important.I mention this to encourage you to make a proactive decision about your total financial strategy. 

You are also packing in the most square footage you can on that lot, another good economic decision.

I think your response highlights the need to ask a knowledgeable appraiser in my area to make a truly informed decision.  

This is a money decision and  I am going to hazard a guess that if the OP specs the cost staying with gas heat makes sense.