The British Property Foundation (BPF) has called for a new settlement between the government and insurers so that thousands of people living in flood prone areas are not left in the lurch when the current contract comes to an end.
Presently, an agreement made a number of years back guarantees all homeowners access to home insurance regardless of how liable the building is to suffering flood damage.
That contract comes to an end in June 2013 so anyone renewing their policy from July 2012 onwards may find themselves affected.
As many as 200,000 home and business owners will find that their property can no longer be insured, and that number is only set to increase.
However, it may not just affect the availability of insurance. Many may find they are unable to sell their property or get a hold of a mortgage.
"Insurers are determined that flood insurance remains as widely available and as competitively priced as possible after the current Statement of Principles agreement with the government ends in June next year," said Nick Starling, the director of general insurance at ABI.
"This can only happen if the government agrees with the industry a new, long-term and sustainable flood insurance model."