County expands earthquake insurance coverage

The figure, developed after a recent appraisal, is about 30 percent more than the estimate the county had been using, said Walt Bradshaw of Bradshaw and Company Insurers in Dyersburg. The previous estimate had been $16,924,000.

With an increase like that, county officials could expect a sizeable increase in earthquake insurance premiums, too. It didn't happen. The county's costs actually decreased about $11,000, County Mayor Richard Hill said.

Dyer County has been part of a statewide insurance pool since the 1980s with liability, property, motor vehicle and equipment coverage for the general government offices, the sheriff's department, jail and highway department. Earthquake coverage is built into the insurance pool but was limited last year to $50 million. That's $50 million available in benefits statewide for earthquake damage.

After the appraisal, Bradshaw said, the benefit limit was increased to $200 million.

Concerned last year that the insurance pool wouldn't provide enough coverage for all of the counties susceptible to earthquakes, Dyer County purchased a separate earthquake insurance policy. The policy cost about $23,000 and covered 24 of the 25 buildings, Bradshaw said. He explained the jail is covered by a separate insurance policy.

Since the insurance pool quadrupled its earthquake benefits, the county decided to trim the number of buildings it insures separately. Hill said the County Commission's Insurance Committee authorized him to make a decision on a separate earthquake policy. He and Bradshaw met June 16 to discuss options, and Hill asked Bradshaw to make a presentation to the full county commission on Monday night.

On Monday night, the county commission voted to buy special earthquake coverage for six buildings: the courthouse; the jail; the health department; 101 W. Market St., which houses the election commission and general sessions court; 115 W. Market St., which houses the county clerk's office; and the Dyer County Complex on Everett Avenue. According to the new appraisal, it would cost $15,804,000 to replace those buildings.

The commission authorized spending about $12,000 for separate earthquake policies. One policy begins this month, providing coverage for five of the six buildings for $6,000-$7,000. The jail's current earthquake policy expires in April and will be renewed for about $5,000 to $6,000, Bradshaw said.

All of the county's buildings also will be covered by the state insurance pool. The county paid about $222,592 for the state insurance pool last year and expects to pay $230,781 during the 2009-10 budget year.

Insurance Committee Chairman Alan Burchfiel said the policy approved Monday night provides the county with quite a bit more coverage at a reasonable rate. He noted the county's cost for participating in the state insurance pool remains more or less the same as last year.