Congress takes steps to write off FEMA debt

Just in time for the start of hurricane season June 1, the Senate (the one in Washington) has agreed to write off $17.5 billion in debt the Federal Emergency Management Agency's National Flood Insurance Program owes the Treasury.

A Senate bill to extend the program for five years includes measures to increase premiums and reduce subsidies; they're aimed at putting the program on better financial footing.

The bill now goes to the House of Representatives, which has a version of the bill that differs from the Senate's in that it extends the program to cover wind damage. Such a move has "veto" written all over it, according to widely published reports.

The debt piled up after the devastation wrought by Hurricane Katrina and other storms in 2005. The bad news is that the shortfall effectively is now down to taxpayers to settle because the writeoff adds what is owed to the national debt.

Lawmakers from both parties were in agreement that the move was necessary because of the exceptional circumstances resulting from Katrina, the Associated Press reported. The alternative was for FEMA to raise premiums if it were forced to continue paying interest on the debt to the Treasury.

The flood program was created in 1968 to help homeowners and businesses in flood-prone regions get affordable insurance not usually available on the private market. The national average premium for a flood policy is about $500 a year. In Charleston County, the average premium is $578, which compares with $512 across South Carolina.

Under the national program, homeowners can buy up to $250,000 worth of coverage for the house structure and up to $100,000 for personal contents.

The limits for businesses are $500,000 for each. Many private insurance companies offer flood insurance policies, too, under an arrangement with FEMA. For more information, go to www.floodsmart.gov.

Island life

UBS Financial Services Inc. has opened an office — and renamed the building it now occupies — on Daniel Island.

The new office at 900 Island Park Drive is the old Daniel Island Medical Center building. UBS renovated and upgraded the space and renamed the building the UBS Center.

Jeff Burton will serve as manager of the new office. The move to the new location was prompted by the growth and increased activity of the Daniel Island investor base, Burton said.

UBS employs 25 people on Daniel Island and about 18 at the company's downtown Charleston office. Locations in Savannah and on Hilton Head Island make up the regional offices.

UBS has offices in 50 countries, with about 39 percent of its employees working in the Americas, 34 percent in Switzerland (where it's based), 17 percent in the rest of Europe and 10 percent in Asia. The company employs about 80,000 people worldwide.

Reach Peter Hull at phull@postandcourier.com.