Rising global temperatures could also lead to higher home insurance costs and make it harder for homeowners to get cover, the Association of British Insurers (ABI) has warned.
Its report, The Financial Risks of Climate Change, produced by AIR Worldwide and the Met Office, predicts that temperature changes could significantly increase the costs of flood and storm damage.
By using current climate and home insurance catastrophe models, it looks at the implications of future temperature increases of two, four and six degrees C.
ABI's study reveals that average annual insured losses from river flooding and flash floods could rise by 14 per cent to £633 million if temperatures rise by four degrees C.
The same temperature rise, which could occur as early as 2060, would also increase average annual windstorm losses by a quarter to £827 million as storm systems alter.
Wales and the south-west would be the most badly affected areas of the UK, putting increased pressure on Brits when it comes to finding and paying for home insurance.
The report's conclusions have serious implications for insurers, householders, businesses and governments, says Nick Starling, ABI director of general insurance and health.
He commented: "The continued widespread availability of property insurance in the future depends on taking action now to manage the threats of climate change."
Mr Starling also called on world leaders to reach an agreement on emission reduction targets and urged the UK government to push ahead with the flood and water management bill.
When shopping around for a new home insurance policy, Legal & General urges homeowners not to automatically go with the cheapest, pointing out that it may not provide the level of cover required, particularly if living in an area at greater risk of natural disasters.
"This could be a particular concern to the over 35s, who are three-times more likely than the under 25s to shop around for cheaper insurance," it explained.
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