Homeowners Choice Announces Florida Regulatory Authorization to Increase Its Citizens Policies to 95,000 from 30,000

Sep 4, 2008

Houston Chronicle--September 4, 2008

Homeowners Choice, Inc. (HCIIU), a Florida-based provider of homeowners’ insurance, today announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Company, Inc., has received approval from the Florida Office of Insurance Regulation to increase its policy takeout authorization from Citizens Property Insurance Corporation to 95,000 policies from 30,000 policies.

Citizens is a state-created homeowners insurance company. The State of Florida has a take-out program that encourages private insurance companies to assume policies from Citizens to reduce the State’s risk exposure.

“This increased takeout authorization reflects recognition by the Florida OIR of our solid financials and capitalization,” said F.X. McCahill, chief executive officer of Homeowners Choice, Inc. “We plan to use this authorization to assume additional policies over the next few months, provided they meet our stringent underwriting criteria.”

In July of this year Homeowners Choice, Inc. completed an $11.6 million initial public offering in which it sold 1.66 million units consisting of one common share and one warrant at $7.00 per unit. In addition, it recently reported a profitable 2nd quarter 2008.

About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater, Fla. Its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., which began operations in July 2007, provides property and casualty homeowners’ insurance, condominium owners’ insurance and tenants’ insurance to Florida property owners. On July 31, 2008, units comprised of one Homeowners Choice, Inc. common share and one warrant began trading on The NASDAQ Global Market under the ticker symbol “HCIIU.” The company expects common shares and warrants will begin separate trading on The NASDAQ Global Market under the ticker symbols “HCII” and “HCIIW” on Sept. 15, 2008. The company’s principal executive offices are located at 2340 Drew Street, Suite 200, Clearwater, Fla. 33765. More information about Homeowners Choice, Inc. is available at www.hcpci.com.

Forward-Looking Statements

This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,”“estimate,” “expect,”“intend,” “plan” and “project” and other similar words and expressions are intended to signify forward-looking statements. The forward-looking statements in this news release include statements regarding the company’s expectations regarding when the company’s common stock and warrants underlying the units will begin trading on The NASDAQ Global Market. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company’s registration statement filed with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company’s business, financial condition, and results of operations. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.