This presentation includes certain forward-looking statements and information, including statements regarding plans, strategies, and expectations of Homeowners Choice, Inc. When used in this presentation, words such as “believes,” “anticipates,” “expects,” “estimates,” or words of similar meaning are generally intended to identify forward-looking statements. All statements other than statements of historical fact included in this presentation are forward-looking statements. These forward-looking statements are subject to risks, uncertainties, assumptions, and other factors, many of which are beyond the control of Homeowners Choice Inc. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements are described in the company’s filings with the Securities and Exchange Commission, including within the “Risk Factors” section of the company’s prospectus filed July 24, 2008 and its Annual Report on Form 10-K filed March 30, 2010.

© 2011 Homeowners Choice Inc. All Rights Reserved

•      Clearwater Florida-based property and casualty company

•      Raised $13 million equity capital in April 2007

•      Began operations in July 2007

•      Raised $10 million in July 2008 IPO

•      Book value per share increased to $7.74 from $2.43 in 3 years

•      Initiated quarterly dividend

© 2011 Homeowners Choice Inc. All Rights Reserved

•      Homeowners Insurance

•      Condominium Owners Insurance

•      Renters Insurance

© 2011 Homeowners Choice Inc. All Rights Reserved

•      

59,000 policies *

•      

$120 million in annualized premiums *

•      

Well positioned for significant growth via strategy that leverages management expertise and Florida regulatory programs

© 2011 Homeowners Choice Inc. All Rights Reserved

•      

4.4 million in personal residential and condo owners policies

•      

$6.9 billion in premiums

•      

Diminishing presence by certain competitors

© 2011 Homeowners Choice Inc. All Rights Reserved

Florida Major Hurricane History

1964 –None

1980 –None

1996 –None

1965 –1

1981 –None

1997 –None

1966 –None

1982 –None

1998 –None

1967 –None

1983 –None

1999 –None

1968 –None

1984 –None

2000 –None

1969 –None

1985 –1

2001 –None

1970 –None

1986 –None

2002 –None

1971 –None

1987 –None

2003 –None

1972 –None

1988 –None

2004 –3

1973 –None

1989 –None

2005 –2

1974 –None

1990 –None

2006 –None

1975 –1

1991 –None

2007 –None

1976 –None

1992 –1

2008 –None

1977 –None

1993 –None

2009 –None

1978 –None

1994 –None

2010 - None

1979 –None

1995 –1

© 2011 Homeowners Choice Inc. All Rights Reserved

Risk Transferred via Reinsurance

•      

New comprehensive reinsurance catastrophe program in June 2010

•      

Small single event retention of approximately $7 million

•      

Coverage of approximately $386 million is in excess of 1-in-100 year Probable Maximum Loss (PML)

•      

All Reinsurers are either A.M. Best “A-” rated or fully collateralized

© 2011 Homeowners Choice Inc. All Rights Reserved

© 2011 Homeowners Choice Inc. All Rights Reserved

•      

Gross premiums earned up 78% to $110.0 million

•      

Net premiums earned up 38% to $65.3 million

•      

Net income of $10.9 million, or $1.52 per share (diluted)

•      

Profitable in Q3 and Q4 despite rising reinsurance costs

•      

Cash, short-term and other liquid investments of $92 million

•      

Book value per share rose 29.7% to $7.03

•      

Repurchased approximately 452,000 shares through 12/31

© 2011 Homeowners Choice Inc. All Rights Reserved

•      Gross premiums earned up 7% year over year at $89.7 million

•      Cash, short-term and other liquid investments of $111 million

•      Book value per share rose 10% to $7.74 from year end 2009

•      Conservative investment portfolio

•      Repurchased 215,969 shares in first nine months

© 2011 Homeowners Choice Inc. All Rights Reserved

Looking Ahead

•      

Growth opportunities include acquisition and/or organic growth

•      

Recurring revenue stream of $120M +

•      

Anticipate improved 2011 profitability through policy optimization and reduced reinsurance costs

•      

14% rate increase in effect from April 2010

•      

Quarterly and annual dividend

•      

Planned expansion into Alabama

© 2011 Homeowners Choice Inc. All Rights Reserved

          Public Peers

Universal Insurance

21^st Century Holding

United Insurance

Homeowners

Choice

Source: Yahoo Finance

© 2011 Homeowners Choice Inc. All Rights Reserved

  Nasdaq (Common/Warrants):

HCII / HCIIW

  Recent Price (1/12/11)

$8.30 (Warrants $ 0.88)

  Market Cap:

$ 52.04 Million**

  Range:

$ 5.15 - $ 9.15

  Shares Outstanding:

6.2 Million**

  Fully Diluted Shares:

6.7 Million*

  Book Value:

$ 7.74*

  Inside Ownership:

30%**

  Cash, Short-term & Other Liquid Investments:

$ 111 Million

  Revenue TTM:

$ 59.4 Million

  Diluted EPS TTM:

$ 0.66*

  Price Book:

1.07x

  P/E TTM:

12.75x

  * At 9/30/10

© 2011 Homeowners Choice Inc. All Rights Reserved

Thank You

Office Location

Independent Registered Public Accounting Firm

6201 15th Avenue

Brooklyn, NY 11219

Tel (800) 937-5449

Direct all inquiries for investor relations information, including copies of the Company’s Form 10-K and other reports filed with the SEC, to: Jay Madhu

Vice President Marketing and Investor Relations

Homeowners Choice, Inc.

2340 Drew Street, Suite 200

Clearwater, FL 33765

Phone: (727) 213-3660

jmadhu@hcpci.com

© 2011 Homeowners Choice Inc. All Rights Reserved

The issuer has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents that the issuer has filed with the SEC for more complete information about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, a written prospectus related to the offering may be obtained from Anderson & Strudwick, Incorporated, the placement agent in the offering, by calling 1-800-767-2424.

© 2011 Homeowners Choice Inc. All Rights Reserved