A number of homes that have been built on flood plains in recent years are becoming increasingly expensive to insure, according to the Association of British Insurers (ABI).
By 2020, a third of three million new homes to be built could be located on flood plains, the institution states.
It advises government intervention to prevent development in areas where houses will be "unsaleable, uninsurable and uninhabitable".
Moneysupermarket.com also predicts that those living on a flood plain will also see a large rise in
home insurance premiums.
The price comparison website asserts that the average cost of settling a claim due to flood damage has now risen from £70,000 to £200,000.
It advises those moving home to carefully consider the location of their new property and to examine the risk of flooding, adding that a robust
home insurance policy is essential for those who choose to live in a flood plain area.
"People should also check the details of what their buildings and contents policies cover as well as the limits and excesses on both," the company advised.
InsureandGo offers a number of competitive
home insurance policies to provide security in the event of damage.