Tennessee Supreme Court Upholds $150M Cut in Mall Flood Coverage

In a blow to the owner of Opry Mills Mall, the Tennessee Supreme Court has let stand a lower court’s ruling that stripped $150 million of insurance coverage for the 2010 flood.

The state’s highest court announced last month that it would not hear an appeal from the Simon Property Group. The decision let stand a ruling from an appellate court that found the mall was located in a “high hazard flood zone,” and therefore only entitled to a maximum of $50 million in insurance coverage.

The mall was submerged in 10 feet (3 meters) of water during the flood that killed 11 people in Nashville and damaged some of the city’s most iconic structures. A total of 26 people died in the flood in Tennessee and Kentucky.

It took two years for the entire property to be rebuilt and cost millions of dollars.

A jury awarded the property group $200 million from a group of insurers after hearing the amount of loss the mall sustained from the flood. However, the Tennessee Court of Appeals overturned that verdict and said the $50 million was the maximum amount of coverage due because the insurance policies made exceptions for properties in “high hazard flood zones,” court records show.

An attorney who represents Simon Property Group did not respond to a message seeking comment.