If you're buying a home in Foley, Alabama, or already own one, you've probably noticed something: this Gulf Coast community is booming. Between 2020 and 2022, Foley's population jumped by nearly 15%, making it one of the fastest-growing cities in Alabama. New subdivisions are popping up, property values are climbing, and Baldwin County—where Foley sits—is now the sixth fastest-growing metro area in the entire United States. That's exciting news if you're invested in this community. But here's what that growth means for your home insurance: you're in a high-demand coastal market with serious weather exposure, and insurers know it.
Foley isn't just any Alabama town. You're about 10 miles inland from the Gulf of Mexico, which puts you squarely in hurricane territory. You've got flood zones along Wolf Creek and the Magnolia River. You've got wind and hail exposure from severe storms. And because of all that, your home insurance situation is more complicated than it would be in, say, Huntsville or Birmingham. Let's break down what you actually need to know.
Why Foley's Location Makes Insurance More Expensive
Here's the reality: Baldwin County homeowners often pay over $3,000 per year for home insurance, compared to a state average of around $2,800 to $3,100. Why the premium? Three big reasons.
First, you're in hurricane country. Hurricane Sally in 2020 caused millions in damage across Baldwin County. Even if your specific neighborhood escaped major harm, insurers look at the broader risk profile—and Foley scores high for hurricane and tornado exposure. Second, flood risk. Foley has a "high flood risk" score, with some properties facing a 1-in-4 chance of flooding over a 30-year mortgage. That's not just in designated flood zones—even areas marked as "X zones" (supposedly lower risk) can flood during 500-year events or storm surge. Third, wind and hail. Severe storms bring hail damage and destructive winds, and many insurers in Baldwin and Mobile counties won't even include wind coverage in standard policies. You often have to buy it separately.
All of this adds up to higher premiums, stricter underwriting, and in some cases, difficulty finding coverage at all. Some Foley homeowners have struggled to secure affordable policies in 2025 as insurers tighten their coastal exposure.
What Your Standard Homeowners Policy Covers (and What It Doesn't)
Most Alabama homeowners get an HO-3 policy, which is the standard "special form" coverage. It protects your dwelling and personal property against named perils like fire, lightning, theft, and certain types of storm damage. It also includes liability coverage—if someone gets hurt on your property, your policy helps cover medical bills and legal costs.
But here's what surprises a lot of Foley homeowners: your standard policy likely does not cover flood damage. It might not fully cover wind damage either. Many insurers in Baldwin County exclude wind from the base policy or apply a separate, higher deductible for windstorm claims. And earth movement—like sinkholes or landslides—isn't covered at all.
So if a hurricane blows through and damages your roof, you might be covered—unless the damage is classified as "flood" (like water coming through your front door), in which case you're not. This is why reading your policy declarations page matters. Look for exclusions, separate deductibles, and coverage limits. If you're not sure what's covered, ask your agent to walk you through it line by line.
Flood Insurance: Do You Really Need It in Foley?
If you're in a Special Flood Hazard Area (SFHA)—basically a high-risk zone—and you have a federally backed mortgage, flood insurance is mandatory. But even if you're not in an SFHA, you should seriously consider it. Why? Because Foley has areas with moderate to high flood risk that fall outside the technical high-risk zones. Wolf Creek and the Magnolia River have sections designated as flood hazards, and storm surge from Gulf hurricanes can push water inland farther than people expect.
Here's a stat that should get your attention: just one inch of water in your home can cause up to $25,000 in damage. Flood insurance through the National Flood Insurance Program (NFIP) or private insurers typically costs a few hundred to over a thousand dollars per year, depending on your risk level. That's a lot less than paying out of pocket to replace flooded drywall, ruined appliances, and soaked belongings.
Baldwin County has updated its flood hazard management plan for 2025, which means they're taking this risk seriously. You should too. If you're buying a home, check the FEMA flood maps during your due diligence. If you already own, consider getting a flood elevation certificate to see if you qualify for lower rates.
Wind and Hail Coverage: The Coastal Catch
In Mobile and Baldwin counties, many standard homeowners policies either exclude wind coverage entirely or separate it out with a different deductible. This is a coastal thing—insurers don't want to take on too much hurricane exposure, so they make you buy wind coverage separately or go through the Alabama Insurance Underwriting Association (AIUA), which is the state's last-resort insurer for wind and hail.
AIUA coverage tends to be more expensive than what you'd get on the open market, but if you can't find wind coverage elsewhere, it's your safety net. Some homeowners end up with a patchwork of policies: one for dwelling and liability, another for flood, and a third for wind and hail. It's not ideal, but it's how coastal insurance works in Alabama.
A 2025 study on Hurricane Sally found that homes built to IBHS Fortified standards had 75% lower claims costs—saving insurers over $100 million in Baldwin and Mobile counties alone. If you're building or renovating, consider Fortified construction. Some insurers offer discounts for it, and it genuinely reduces damage in storms.
How to Save Money on Home Insurance in Foley
Rates are going up across Alabama—2025 projections show a 7% statewide increase—but you're not powerless. Here are some ways to keep your premiums in check:
Shop around. Premiums for the same coverage can vary by hundreds or even thousands of dollars between insurers. Get quotes from at least three companies. Raise your deductible. Going from a $500 to a $1,000 or $2,500 deductible can lower your premium significantly. Just make sure you have the cash to cover the higher deductible if you file a claim. Bundle policies. If you insure your car and home with the same company, you'll usually get a discount. Improve your home's resilience. Install storm shutters, upgrade your roof, reinforce your garage door. These improvements can qualify you for discounts and reduce damage in the next storm. Maintain good credit. In Alabama, insurers use credit-based insurance scores to set rates. Keeping your credit in good shape can help keep your premiums down.
Getting Started with Home Insurance in Foley
If you're new to Foley or reassessing your coverage, start by understanding your specific risks. Pull up your property on FEMA's flood map service to see your flood zone. Ask your insurer or agent whether your policy includes wind coverage or if you need a separate policy. Get quotes for flood insurance even if you're not required to have it—knowing the cost helps you make an informed decision.
Work with an independent agent who knows Baldwin County. Coastal insurance is complicated, and you want someone who understands the local market and can shop multiple carriers for you. And finally, review your coverage annually. As Foley grows and your home's value increases, make sure your coverage limits keep pace. The last thing you want is to be underinsured when the next storm rolls through.
Foley is a great place to live—growing, vibrant, and close to the Gulf Coast's beaches and lifestyle. But with that coastal location comes real insurance challenges. By understanding your risks, securing the right coverage, and working with knowledgeable professionals, you can protect your home and your financial future no matter what the weather brings.
