People who live in Massachusetts know that the winters can be treacherous. From damaging winds to heavy snow and ice events, the arctic temperatures that residents must face become a regular part of living in New England. Other seasons can present major weather problems as well, and neighboring cities like New York were horrifically affected by rain and winds just this last year. All of those regional weather problems are contributing to a new concern for many commercial and residential property owners in the area.
New England residents are on notice that their flood insurance premiums will be going up in the new year. In the wake of Superstorm Sandy and the devastating aftermath that it left in its path, insurance groups are learning that areas once believed to be safe from weather disasters are no longer guaranteed to be out of harm’s way.
A Massachusetts state legislator believes that these increased costs will cause major problems for the state’s housing market as well as its general economy. Noting that people are not buying homes that may have high flood insurance rates and that builders are not constructing homes where flood insurance may keep buyers from showing interest, flood insurance is becoming one of the biggest residential real estate matters to impact the region in some time.
Of course, flood insurance is only one of many particulars that can sway a buyer to or from a prospective residential property. Property taxes, closing costs and a myriad of other financial and intangible factors can make a house appealing or unattractive as individuals hope to move toward real estate closings.
As people in Massachusetts and all across New England wait to see what will happen with their flood insurance rates, buyers and sellers in the area are working to learn more about the properties they want to buy. Anyone with questions or concerns about residential real estate can choose to work with a legal real estate professional that can help guide them through the processes of making offers and closing on homes.
Source: Sentinel & Enterprise, “Superstorm Sandy’s next wave: Rising flood-insurance costs,” Francesca Barbato & Alexandra Shi, Dec. 29, 2013