Homeowners Choice Declares Dividends on Preferred Shares

Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, today announced that its board of directors has declared cash dividends of 5.833 cents per share on its Series A Cumulative Redeemable Preferred Stock ("HCIIP") for the months ending June 30, July 31 and August 31, 2012.

The June dividend is payable July 27, 2012 to shareholders of record at the close of business on July 2, 2012.

The July 2012 dividend is payable August 27, 2012 to shareholders of record at the close of business on August 1, 2012.

The August 2012 dividend is payable September 27, 2012 to shareholders of record at the close of business on September 4, 2012.

About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Tampa. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance. Founded in 2006, Homeowners Choice serves approximately 118,000 policyholders throughout Florida representing approximately $224 million in annualized premiums. The company's common shares trade on the NASDAQ Global Select Market under the ticker symbol HCII and are included in the Russell Microcap Index. Its warrants trade on the NASDAQ Global Market under the ticker symbol HCIIW. Its Series A, cumulative redeemable preferred shares trade on the NASDAQ Capital Market under the ticker symbol HCIIP. More information about Homeowners Choice, Inc. is available at www.hcpci.com.

The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712

CONTACT: Media Contact:
         Suzie Boland
         RFB Communications Group
         813.259.0345
         [e-mail]
         
         Investor Relations Contact:
         Jay Madhu
         Homeowners Choice, Inc.
         813.405.3660
         [e-mail]