THE insurance crisis looming for thousands of York and North Yorkshire households at risk of flooding has been laid bare at a York conference.

Experts warned that an impasse over flood insurance threatens to leave homeowners facing sky-high premiums or unable to obtain cover at all.

Paul Cobbing, chief executive of the National Flood Forum, revealed that his organisation had been approached by people who were struggling either to sell or buy properties in flood risk areas of York because of difficulties obtaining insurance.

They spoke out at the UK’s first conference dedicated to flooding insurance, which was hosted yesterday by City of York Council at its West Offices headquarters.

The conference was held only seven weeks before an agreement between insurers and Government, which ensures high-risk homes can get flood insurance, is due to expire.

No agreement has yet been reached on a replacement for the “statement of principles” agreement, which dates back to the devastating floods of 2000.

The Press reported last year that more than 2,000 York households, in areas such as Clementhorpe, could be left without insurance unless a fresh deal was struck.

A further 762 households were calculated to be at risk of losing insurance in the Thirsk and Malton constituency.

Mr Cobbing warned that unless a new deal was struck, a free market would develop and whole communities could be blighted.

Mary Creagh, Shadow Environment Secretary, said “incompetent ministers” had done nothing for two years and now needed to “get a grip on flood insurance” to ensure 200,000 people in high-risk properties nationwide could continue to insure their homes.

Matt Cullen, of the Association Of British Insurers, said it had worked for more than two years to develop an industry-led model to safeguard the affordability and availability of flood cover.

“The industry and Government have been clear that the current statement of principles agreement is not sustainable long-term and we are doing everything we can to secure Government agreement to our model.”

A Defra spokeswoman said: “The Government is having constructive talks with the ABI and is meeting with them regularly. We want to get an agreement on insurance that provides a lasting solution and secures affordability and availability of flood insurance for policy holders.”

Council leader James Alexander said the authority had organised the conference to raise the profile of an important issue that affected thousands of people locally.