TAMPA, Fla., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Homeowners Choice Property & Casualty Insurance Company, Inc., a wholly-owned insurance subsidiary of HCI Group, Inc. (NYSE:HCI), announced today its plan to offer flood insurance in the state of Florida. Homeowners Choice has submitted the related forms and rate filings with the Florida Office of Insurance Regulation.
Many Florida residents will see substantial increases in their flood insurance premiums as a result of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012. The Act phases out subsidies for certain older properties and imposes large additional costs to property owners, most of whom have never filed a claim under the National Flood Insurance Program.
To provide rate relief to existing customers, Homeowners Choice is applying to regulators to add an endorsement to its policies to include flood coverage. The additional flood coverage is expected to be priced similarly to what Florida residents were paying before the Biggert-Waters Act.
"We want our policyholders to know they are of critical importance to us and key to our decision to offer flood insurance," said Paresh Patel, HCI Group's chairman and chief executive officer. "While we cannot provide a solution to all of Florida, we can - and will - try to help our policyholders hit hardest by hefty rate increases under the National Flood Insurance Program. We plan to enter the market cautiously and focus, as we always have, on our strict underwriting guidelines and calculated risk management."
About Homeowners Choice
Headquartered in Tampa, Florida, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance to Florida property owners. Homeowners Choice serves approximately 140,000 policyholders throughout Florida. Homeowners Choice is a wholly owned subsidiary of HCI Group, Inc., a New York Stock Exchange listed company whose common shares trade under the ticker symbol "HCI." For more information about Homeowners Choice, visit www.hcpci.com.
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 and are subject to various risks and uncertainties. For example, HCI Group, Inc. can give no assurance that flood insurance offerings of Homeowners Choice will obtain necessary regulatory approvals or be accepted by the marketplace. Some of these risks and uncertainties are identified in HCI Group, Inc.'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. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
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Source:HCI Group, Inc.