FEARS are growing that more than 2,000 York households at future risk of flooding could be left without insurance, after talks between insurers and the Government reached an “impasse.”

The Press reported earlier this year that a national deal – agreed in 2000 to ensure high-risk homes could get flood insurance – was due to finish next year.

The Association of British Insurers (ABI) said then that people could have problems accessing competitively priced flood insurance after the floods agreement ran out.

It said yesterday that the Government had refused to consider providing a temporary overdraft facility to a proposed not-for-profit special insurance fund for 200,000 high-risk households nationwide which would otherwise struggle to get affordable household insurance when the current arrangements finish.

Nick Starling, director of general insurance at the ABI, said: “Negotiations have hit an impasse. Insurers know their customers are increasingly worried about flood cover and we will therefore continue talks with Government to try and find a way forward.”

Hugh Fell, managing partner of George F White, one of the North East’s largest property surveyors said properties affected by flooding will be worth less money when they come to sell, partly because of the failure of the Government and ABI to reach agreement.”

A DEFRA spokesman said it remained committed to reaching an agreement with the insurance industry, with a number of options on the table.