NU Online News Service, June 28, 3:16 p.m.EDT

Esurance and Security First Insurance Co. will be partnering tooffer homeowners’ insurance in Florida.

Security First will be underwriting the policies for Esurance, adirect personal automobile insurance company. Policies will comewith a range of payment options, says Esurance in a statement.

Allstate Corp. is looking to buy Esurance and independentinsurance agency Answer Financial from White Mountains InsuranceGroup Ltd. for about $1 billion.

The deal is expected to close in the fall but, for now, Esurancespokesman Danny Miller says the company is “pursuing its ownbusiness strategies.”

“We’re excited about being in Florida,” he adds, speaking of theopportunity to bundle home and auto lines for consumers.

Allstate says it has no comment on Esurance’s partnership withSecurity First, whose chairman and president is former stateSenator Locke Burt.

Esurance began selling the homeowners’ insurance product overthe phone on June 17.

The statement instructs consumers “who have received a rateincrease, non-renewal, or cancelation notice from their insurer” toget a quote over the phone for a Security First policy viaEsurance.

Since it started operations in 2005, Security First hasattempted to step in to the void left when large, national insurerssuch as Allstate and State Farm have announced they plan to droppolicies in the Sunshine State.

Ormond Beach, Fla.-based Security First had $146.2 million inFlorida-only direct premiums written in 2010—an almost 37 percentincrease from the prior year, according to Highline Data.

The company reported net income of about $2 million in 2010.

Highline Data is part of Summit Business Media, which also ownsNational Underwriter.