The speaker of parliament said "terrorists" now controlled not just Mosul but the whole of Nineveh province
Iraq's prime minister has asked parliament to declare a state of emergency after Islamist militants effectively took control of Mosul.
Nouri Maliki acknowledged "vital areas" of the country's second largest city had been seized.
Overnight, hundreds of armed men seized local government's offices and police stations before taking control of the airport and the army's headquarters.
About 150,000 people are believed to have fled the city.
Sources have told BBC Arabic that they are heading to three towns in the nearby region of Kurdistan where authorities have set up temporary camps for them.
Kurdistan Prime Minister Nechirvan Barzani issued a statement appealing for the UN refugee agency to help those fleeing Mosul.
Elsewhere, a double bomb attack in the central town of Baquba killed at least 20 people, police and medics said. The blasts, targeting a funeral procession, also wounded 28 people.
In the past week, the jihadist Islamic State in Iraq and the Levant (ISIS) and its allies have attacked cities and towns in western and northern Iraq, killing scores of people.
'Maximum alert'
The BBC's Jim Muir in Beirut says ISIS has been informally controlling much of Nineveh province for months, imposing tolls on the movement of goods and demanding protection money from local officials.
After five days of fighting, they took control of key installations in Mosul, which has a population of about 1.8 million.
Analysis: Jim Muir, BBC News, Beirut
Prime Minister Nouri Maliki, who is struggling to form a government in the wake of the April elections, has vowed to drive the ISIS "terrorists" out of mainly-Sunni Mosul in short order.
He is unlikely to succeed soon. He made similar vows when Sunni militants took over Falluja, west of Baghdad, in January, and they are still there.
It is not yet clear whether it is only ISIS involved in the Mosul takeover. In Falluja and its province, Anbar, Mr Maliki has clearly alienated many Sunni tribesmen and others, creating fertile soil for the radicals.
Internet images of local youths and even children stoning Iraqi security vehicles as they fled Mosul suggest that the Shia PM is not popular there either.
ISIS is also actively fighting in neighbouring eastern Syria to establish its control there, apparently aiming to straddle the border with an Islamic state.
If Mr Maliki is to defeat the Sunni radicals, he may need the help of Kurdish forces from the north. That will come with a heavy price tag, and they have in any case so far refused.
On Monday, Nineveh Governor Atheel al-Nujaifi made a televised plea to the city's residents, calling on them to "stand firm in their areas and to defend them against the strangers".
But Mr Nujaifi fled shortly before the provincial government's headquarters fell to the onslaught late on Monday.
On Tuesday, several residents told the Associated Press that black flags associated with jihadist groups were flying from buildings and that the militants had announced over loudspeakers they had "come to liberate Mosul and would fight only those who attack them".
"The situation is chaotic inside the city and there is nobody to help us," said Umm Karam, a government employee. "We are afraid."
Many police stations were reported to have been set on fire and hundreds of detainees set free.
Osama al-Nujaifi, the speaker of parliament and brother of Nineveh's governor, called on the Iraqi government and Kurdistan Regional Government to send reinforcements to Mosul to "fight the terrorists", whom he said had seized military hardware, including helicopters.
"What happened is a disaster by any standard," he said. "The presence of these terrorist groups in this vast province... threatens not just the security and the unity of Iraq, but the whole Middle East."
Later, Mr Maliki told a news conference in Baghdad that the security forces had been placed on a state of "maximum alert".
He also said he had asked parliament to declare a state of emergency, which would broaden arrest powers and allow curfews to be imposed.
Meanwhile, the Turkish consulate in Mosul confirmed reports that 28 Turkish lorry drivers had been abducted by militants in Nineveh.
The Iraqi government is struggling with a surge in sectarian violence that killed almost 800 people, including 603 civilians, in May alone, according to the UN. Last year, more than 8,860 people died.
Parts of Ramadi, the capital of Anbar province, and much of the nearby city of Falluja have been under the control of ISIS and its allies since late December, something that Mr Maliki has been unable to reverse.
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