New changes to FEMA’s flood maps means that thousands more residential properties are now located within the high-risk Special Flood Hazard Area (SFHA), according to a Cotality alert published this week.

Within more than 100 communities across 12 states, homeowners must comply with the mandate to secure flood insurance within 45 days, or face disruptions.

Data source: Cotality, 2026

The change can be abrupt, such as in this case, according to the business intelligence provider, and most directly impacts vulnerable homeowners, those with FHA loans, who are already just getting by.

For 10% of homeowners, Cotality data shows that the amount paid into escrow, which accounts for property taxes and hazard insurance, exceeds the principal and interest owed on a home.

Add the fact that change notifications aren’t mandatory leading to some homeowners being left out of the loop, Cotality said.

Historical delinquency data in Gulf Coast states like Louisiana, Mississippi, and Texas, highlight a clear correlation between environmental events, insurance premium spikes, and mortgage defaults, the data information firm added.

“Stability is invaluable, and having the most accurate view of risk will mean millions more homeowners are prepared when the storm inevitably arrives,” said Howard Botts, Cotality’s chief scientist. “Preparation leads to community resilience, which can lessen the burden of recovery.”

With flood insurance becoming a requirement for more and more homes in the U.S., it is essential to ensure stakeholders, like mortgage loan providers, forecast future environmental outcomes and assess long-term risk so homeowners aren’t left in the dark on the true costs of homeownership, the alert added.