Hundreds of thousands of homes could soon face huge problems with insurance when a protection agreement with the Government comes to an end.
That is the warning from the Association of British Insurers.
The ABI said a pact ensuring cover for high-risk homes would end in June 2013. It obliges insurers to provide cover for high-risk properties while the Government continues to improve flood defences.
The ABI wants the risk for the most-vulnerable properties shared with the Government.
Others have also urged action to be taken.
Simon Douglas, director of broker AA Insurance, said: "Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year.
"People want the Government to take decisive action now, to ensure that their homes are protected.
"But that's not happening with the Environment Agency's budget cut by 10%. What's more, the Department for Environment, Food and Rural Affairs is seeking an increased contribution of more than 300% from local resources to tackle flood protection issues, when local government budgets have been severely cut too."
He added: "The Public Accounts Committee has come up with a range of sensible recommendations which must be acted upon now.
"Homeowners expect the Government to take a lead on this issue: they need some reassurance that they won't be left unprotected."
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