Clearwater, FL (July 31, 2008) – Homeowners Choice, Inc. announced today that it has completed an initial public offering of 1,666,668 units, each consisting of one common share and one warrant, at a price of $7.00 per unit. Two warrants may be exercised to acquire one common share at an exercise price of $9.10 per share.

The units will be listed on The NASDAQ Global Market (photo below) and will trade under the ticker symbol “HCIIU” beginning July 31, 2008. The company expects that the common shares and the warrants will begin trading separately on The NASDAQ Global Market under the ticker symbols “HCII” and “HCIIW,” respectively, on or about September 15, 2008.

Homeowners Choice, Inc. is a Florida-based insurance holding company. Its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides property and casualty homeowners’ insurance to Florida property owners.

Anderson & Strudwick, Incorporated and GunnAllen Financial, Inc. were co-lead placement agents for the offering. Foley & Lardner served as the company’s outside counsel. A registration statement relating to this offering was declared effective by the U.S. Securities and Exchange Commission on July 24, 2008. The offering was made only by means of a prospectus, copies of which may be obtained from—

Mac Downs, Senior Vice President
Anderson & Strudwick
PO Box 1459
Richmond, VA 23218
804-344-3809
mdowns@andersonstrudwick.com

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.

"This announcement appears as a matter of record only."

About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company. Its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides property and casualty homeowners’ insurance, condominium owners’ insurance and tenants’ insurance to Florida property owners. Principally it assumes insurance policies held by Citizens Property Insurance Corporation, a Florida state supported insurer. Homeowners Choice began operations in June of 2007. The company’s principal executive offices are located at 145 N.W. Central Park Plaza, Suite 115, Port St. Lucie, Florida 34986, but plans to move its headquarters to Clearwater, Florida in August 2008. For additional information see the company’s filings with the Securities and Exchange Commission at www.sec.gov.

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 signify forward-looking statements. 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.