The ABI will warn the government to take greater account of flood risk in its plans to build thousands of new homes on brownfield sites.
In a report published next week, the ABI will say that the risk of flooding must be taken into account at an earlier stage.
An ABI spokesman said: "The ABI has assessed the risk and more attention must be paid at the planning stage. We are not saying houses should be built in different areas, but that they should not be built without adequate flood defences."
The government is proposing to solve the housing crisis through building affordable homes on brownfield sites rather than greenfield sites where there can be a greater risk of flooding.