A quarter of a million families living in flood-prone areas could lose everything next year after insurers warned today that they wouldn't cover them.
Insurance companies want the government to make sure they're not hit with the full cost of flood damage.
An Association of British Insurers (ABI) spokesman assured the Morning Star there would be no problem with claims from the latest wave of flooding as those with insurance would have "no worries."
But he said that unless a new flood deal is reached with the government around 200,000 households would find it either too expensive to get insurance or they won't be able to get cover at all.
The problem has come to a head because there have been more and bigger floods hitting Britain and insurers are facing flood damage claims of between £20,000 and £40,000 each.
Since severe flooding in 2000 there has been a "safety net" agreement between the companies and the government, where companies with existing customers in high-risk areas had to continue to insure them.
But new firms don't have to do that, putting pressure on older companies.
The agreement ends next June and the two sides have been locked in talks for two years.
Currently, people living in flood risk areas pay a premium which usually goes into a general "high-risk" pot in each individual insurance company - but their premiums are rocketing.
The ABI want an extra £8 charge on every home insurance payment that would go into a national pot, with the government providing an overdraft to pay claims for high-risk households in the event of serious flooding.
The overdraft is meant to cover the first few years as the pot builds up.
But Environment Secretary Owen Paterson attacked the insurance industry for causing flood victims "alarm."
The death toll from the latest flooding remained at three today afternoon while some 530 flood warnings and alerts remained in place.