The government is reported to be proposing a new twist to its deal with insurers to provide flood settlement. It could mean a hike in premiums for all customers, regardless of their flood risk.
At the moment the insurance industry is committed to offering cover to around 200,000 homes in the second-highest category of flood risk. It made this deal in return for the government committing to a program of flood defence improvement.
The deal is set to run out next June and insurers say government spending cutbacks mean it's no longer living up to its side of the deal, having cut the budget for flood defenses by £400 million.
Environment Secretary Caroline Spelman is said to have proposed that insurers band together and impose a levy on all policies to cover the potential costs of maintaining flood insurance for all but the most risky homes.
Analysts have suggested this could mean an average hike of at least seven percent. Spelman maintains this would not be a new cost and would simply formalise existing arrangements.