Homeowners Choice Increases Quarterly Common Dividend 12.5 Percent; Sets Special Dividend

Homeowners Choice, Inc. (Nasdaq:HCII), a leading provider of homeowners' insurance, today announced that its board of directors has declared a regular quarterly cash dividend on its common shares in the amount of 22.5 cents per share, which represents a 12.5 percent increase over the previous quarterly rate of 20 cents per share.

In addition, the board declared a special dividend of 10 cents per common share.  Both the regular quarterly dividend and the special dividend will be paid Dec. 21, 2012 to shareholders of record on the close of business Nov. 16, 2012.  

"These actions evidence the board's confidence in future earnings and its commitment to deliver profits to the shareholders," said Homeowners Choice Chief Executive Officer and Chairman of the Board Paresh Patel. "The board's decision to pay a special dividend in the fourth quarter," he said "was spurred by the uncertainty surrounding the tax treatment of dividends beyond 2012.  In light of that uncertainty, we accelerated into 2012 some of the dividends we would have expected to declare and pay in 2013."

The company recently announced plans to transfer its common stock listing from the NASDAQ Global Select Market to the New York Stock Exchange. The company expects its shares to begin trading on the New York Stock Exchange on Oct. 25, 2012, under the new ticker symbol "HCI."  Until the transfer is complete, the company's common shares will continue to trade under the ticker symbol "HCII" on the NASDAQ Global Select Market.

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 110,000 policyholders throughout Florida representing approximately $220 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 2000 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

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. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. For example, there can be no assurance that the company will continue to pay its quarterly dividend, that it will pay additional special dividends, or earn future profits. Some of these risks and uncertainties are identified in the company's filings 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.

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]