Will you be in deep water over your house insurance?

Flood risk insurance is covered by  “the Statement of Principles on the provision of flood insurance”.  This is an agreement between the Association of British Insurers ('ABI') and the Government.
     Insurers are obliged to offer flood insurance to homes and small businesses, where the risk of flooding is lower than a 1 in 75 year event and where the property is already insured.  For properties at a greater risk, insurance is available on the condition that flood defences will be constructed to reduce the risk below that limit within 5 years. 
    The agreement does not cover properties built after January 2009.
    The Statement of Principles comes to an end on July 1st 2013.  The Insurance Industry wont currently commit itself after that date, without seeing more commitment from the Government to spend on flood defences. Not easy in these cash strapped times.
     An ABI research paper published in January of this year based on a sample of 124000 properties at significant risk (> 1 in 75 year event) showed that 78% of properties in the sample were currently paying an under-priced premium averaging £290 per year.
    One in six properties (commercial and residential) in the UK are estimated by the Environment Agency to be at  risk of flooding and 500,000 of these to be at “significant risk.”     
   The ABI estimates that by 2035 this figure will rise to 835,000 properties.
    Homeowners are currently protected by the Statement of Principles which imposes restrictions on the premiums that insurers can apply.  Come 1^st July 2013 all that changes.  Will you be able to insure your house next year?
    If you can’t insure it can you sell it?  How many mortgage companies will be willing to lend on an uninsurable house?