Imminent federal regulations that apply to the city's expanded flood zones will simultaneously increase insurance costs for homeowners and reduce the value of their properties. It's a non-negotiable requirement that homeowners purchase insurance if they have federally backed mortgages and live in certain high-risk areas, and those costs could now add up to $5,000 to $10,000 a year, compounded by the fact that subsidies meant to help defray those expenses are getting rescinded. Because of the new flood zones, the number of buildings required to purchase insurance has jumped from 35,700 to 67,400. Plus, "[r]esearch indicates that for every $500 increase in premiums, a home's value falls $10,000." [Capital NY; previously]
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