According to recent findings, one in every six homes in the UK are at risk of flooding. The Environment Agency has voiced its concerns that climate change can lead to five million people who live and work in 2.4 million homes at risk of flooding.

In addition, the current rate of 490,000 homes with a significant chance of flooding could rise to 840,000 by 2035 unless more investment is made.

The annual cost of £2.5 billion could rise to £4 billion if measures are not taken.

However, despite this risk, 17 per cent of home owners have cancelled their building insurance, while 22 per cent have dropped their contents cover to save money in the face of the recession, according to the Association of British Insurers, (ABI).

The Environment Agency's chairman Lord Chris Smith, said: "The latest UK climate change data shows that the risk of flooding and coastal erosion will continue to increase in future due to rising sea levels and more frequent and heavy storms, and there are important decisions for us all to take about how to manage these risks to protect people, communities, businesses and the economy in future."

Simon Douglas, director of AA Insurance, said: "The insurance industry has a good record for helping people who have suffered at the mercy of extreme weather.

"Now would be a very good time for those who have not renewed their cover to look for a more competitive insurer rather than cancelling altogether."