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Insurance newcomer Security First jumped the gun last week when it announced it would rewrite State Farm policies in every zip code in Florida. The insurer had to work out details with the state about how it would insure homes threatened by sinkholes. As Whitney Ray tells us, the insurer is weighting the risk and is willing to play ball, for a price.

Hear it Here: Sinkholes Won’t Sink Insurer’s Plans

Fire, water, and wind are just a few of the elements homeowners have to consider when buying insurance. If those elements don’t provide enough fear, the ground your home sits on could pose an even bigger risk.

Florida has more sinkholes than any other state in the nation. They can pop out of nowhere, and sometimes it’s hard to tell just how deep and wide the chasm will get.

Security First knew about sinkhole problems in Central and South Florida when it announced plans last week to pick up 50-thousand policies State Farm is poised to drop.

“We think we are a better neighbor. We live here. We know how to manage the risk,” said Security First President Locke Burt.

Security First said it would rewrite State Farm policies in every part of the state, then quickly froze out areas in six counties where sinkholes were common. On Friday, the company reached an agreement with the state to do business in those areas.

“Customers would have to add sinkhole coverage, and in order to do that now, Security First is requiring they now also have an inspection of their property,” said OIR Spokesman Ed Domansky.

The inspections cost 150 dollars. Security First has volunteered to pay half. Then, the decision about whether to add sinkhole coverage will be left up to the customer.

There are dozens of insurance companies chomping at the bit to pick up the 1.2 million policies State Farm wants to drop. Still, the State Farm move isn’t official and the company plans to give customers two years to shop around before it drops policies.