State receives $7.5M check for flood damage reimbursement

Wednesday, January 5, 2011 at 4:20pm
Staff reports

The State of Tennessee has received a $7.5 million reimbursement for a significant portion of last May’s flooding damage that was covered by private insurance, the Tennessee Department of Treasury announced Wednesday.

Treasurer David H. Lillard, Jr., received a check this week from Greg Dobson of Lexington Insurance Company. James O’Dell with Willis of Tennessee assisted in brokering the coverage.

“These companies have been good partners with state government as we have been rebuilding following last year’s devastating floods,” Lillard said in a release. “We are pleased to have a strong professional relationship with them.”

Last June, the state received a $5 million check as an initial payment from Lexington Insurance Company.

State buildings and other state-owned property sustained an estimated $20 million in damages during the flooding. Lexington Insurance Company is expected to cover approximately $15 million of that total.

In addition, the Federal Emergency Management Agency is expected to provide $4 million to cover the state’s flooding damage, with the state covering the remaining $1 million, the treasury department said.

The department’s Risk Management Division is responsible for risk management for all property and operations of the state, including public higher education institutions. The value of all property under the division’s purview is approximately $16.9 billion.