Two years ago, parts of the UK were hit badly by flooding, lives were lost and many houses and businesses still have not recovered.

And last summer saw some of the worst flooding in Central Europe for more than a century.

BBC News Online looks at the current state of flood defence and asks, with insurers getting twitchy about claims, are large parts of the country about to become uninsurable.

Is much of the UK in danger of flooding?

The Department for Environment, Food and Rural Affairs (Defra) estimates that 10% of the land area of the UK is in danger of flooding.

Up to 2 million homes and 185,000 businesses are at risk from flooding.

Despite the Environment Agency trying to increase flood awareness many people living in flood plains are still not aware that they are at risk.

What about flood defences?

Government spending was stepped up in the aftermath of the 2000 floods.

But according to last July's spending review the really big increases in inland flood defence spending will not kick in until 2004-05.

To speed up work now, the government has introduced new flood planning procedures.

But all this could be too little too late for some insurers, as from 2003 they may start cancelling policies on homes at risk.

On what grounds?

Put simply, insurers are fed up with picking up the bill for flooding.

The floods of 2000 are estimated to have cost the industry �1bn.

As a result, the Association of British Insurers (ABI) came to an agreement with the government that in return for concerted action on flood defence insurers would continue to offer cover to high-risk areas.

However, the ABI put a deadline of 2003 on this agreement.

With flood defences incomplete the ABI has advised insurers that although they should aim to offer insurance wherever possible from the new year premiums charged will reflect the risk of flooding.

Are all people at risk of flooding in danger of having their insurance cancelled?

The UK's biggest insurer, the Norwich Union - which paid out �200m in the aftermath of the 2000 floods - claims not.

"It's more likely that those at risk will see premiums rise or face paying high excess." Liz Kennett, told BBC News Online.

However those living in areas where chronic flooding occurs will fare less well.

"A flood claim costs on average �10-15,000, with some homes we can't keep shouldering the burden and insurance will have to be cancelled," Ms Kennett said.

In addition, homeowners at most severe risk of flooding have been issued with a stark warning by the ABI.

In future, insurers will take a case by case approach which may mean some homes are simply deemed uninsurable. P> Can anything be done for these households?

The government and ABI are meeting in October to discuss where to go from here.

Norwich Union says that new precision digital mapping means that from next year some insurers will be able to pinpoint particular homes at risk rather than simply blacklisting postcodes.

But whatever the result of new technology some homes are simply going to be seen as too high-risk to insure.

As a result, uninsurable homes are likely to become worthless.

When the flood defences when they arrive solve the problem at a stroke?

In short, no. Many decisions to build flood defence are arrived at through a cost-benefit analysis.

Put simply this means that savings have to justify the expenditure.

Highly populated flood plains, such as the Vale of York, have passed this test and flood defences are being built.

But less populated areas may end up without defences and possibly insurance.

So what are people in these areas to do?

There are several options on the table.

Firstly, the imposition of local taxes to raise money for flood defences has been mooted.

In addition, businesses and households in endangered communities could club together to build defences.

All in all, though, Ms Kennett says that the fate of those households most at risk is still yet to be decided.

"This issue is going to play a part in the discussions between the government and the insurance industry," said Ms Kennett.

Further information?

The Environment Agency has a helpline and website, where users can get practical information and advice about flooding.

Call Floodline 0845 988 1188 or log on to www.environment-agency.gov.uk for advice.