The public/private compact ensuring British householders have access to flood insurance is in danger of crumbling amid concern about the UK Government's ambitious home-building program.

The Association of British Insurers (ABI) has hit out at plans to build 3 million new homes by 2020. It claims a third of these houses will be built on flood plains.

ABI Assistant Director of Property Justin Jacobs says insurers may be forced to withdraw cover unless the flood risk is properly managed.

"Insurers want to continue to provide flood cover, but poor planning decisions will lead to more homes becoming unsaleable, uninsurable and uninhabitable," Mr Jacobs told an industry conference.

UK insurers generally include flood cover in homeowners and household policies. Insurers have paid out £3 billion ($6.4 billion) in claims resulting from last summer's floods.