People who live in areas at risk from flooding are facing a big rise in the cost of insurance.

Radio 4's Moneybox programme has learned that some insurers are planning to increase premiums in the new year because a deal with the government is running out.

The last serious flooding in 2000 left insurers with a bill topping �1bn.

The government and insurers worked out a deal under which householders in flood risk areas could not be refused cover until the end of this year.

Defences

Now floods minister Elliot Morley has made it clear that the agreement is not being extended, leading to concerns that some householders in flood-risk areas will find it difficult or impossible to find insurance from 1st January.

Many insurers who spoke to Money Box, admitted they would have to put up premiums, even in areas where flood defences have been built since 2000.

And some companies said they would refuse cover altogether.

However, Mr Morley told the programme he believed it would still be possible to find reasonably priced insurance if people shopped around.

Flood tax

The government has been considering a range of proposals in an effort to help householders.

One proposal was that a levy contributed by all council tax payers to fund flood defences would be replaced by a tax on people whose homes are at risk.

Another suggestion was that developers building in flood plains would pay a one-off "connection charge" to contribute towards protecting new properties.

But the government has made it clear that the best way for householders to protect themselves is to check the flood risk before buying a property.