WATERBURY — The village’s insurance will provide a nearly $350,000 blank check as compensation for its old office building at 51 S. Main St. due to Tropical Storm Irene damage.

A contractor had estimated almost a year ago that bringing the building back to its pre-flood condition would be $435,844, but Waterbury officials have considered the space insufficient for their needs in coming decades, municipal manager Bill Shepeluk said Wednesday at a village trustees meeting.

The trustees can determine how to spend the money, and there are no restrictions.

Due to depreciation, the village’s insurance had anticipated providing 75 percent of the rehabilitation estimate as an option for the village.

But the village argued inflation should bump the amount up. The company ultimately offered 80 percent of the rehabilitation estimate, Shepeluk said.

The insurance will continue to provide heat and electricity to 51 S. Main St. and rental costs for the village police department, but the arrangement won’t last indefinitely.