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.
City of Worcester's Initiative
The City of Worcester has announced a program that will help low-income earners pay for flood insurance. A quick link to that:
Flood-Prone Areas in Worcester
Worcester has a couple of 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 Street to Quinsigamond Avenue)
Along Beaver Brook Parkway (between Maywood Street and Chandler Street)
Cost of Flood Insurance
Typically, flood insurance is about $2,500 per year, which essentially translates to an additional $200 per month in taxes. When you purchase in a flood zone, keep this in mind. If principal and interest are at 5%, you should discount the house around $40,000 in value due to the increased cost.
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