Seller Tips


Is falling insurance finally helping Southwest Florida sellers? 2026 market analysis

By Mark & Dawn Borg·October 1, 2026·8 min read
Sold sign in front of a Southwest Florida home, relevant to current seller market conditions

If you've been waiting to list your Bonita Springs or Estero home until Florida's insurance situation "gets better," you've probably seen the same headlines we have. Citizens Property Insurance just approved its first personal-lines rate decrease since 2015. Heritage cut rates in Lee County. Florida's Office of Insurance Regulation says premiums are falling in 51 of the state's 67 counties this year.

Here's what those headlines don't tell you: in Southwest Florida specifically, the relief has been thin. We're going to walk through what's actually happening with insurance here, what it means for your listing, and why the sellers getting the best results right now aren't the ones waiting for a bigger insurance break — they're the ones pricing and marketing around the reality of today's market.

Current market conditions in Southwest Florida

Southwest Florida is still very much a buyer-friendly market, and insurance costs are a big reason why.

As of early October, Collier and Lee counties combined show roughly 31,963 active listings with a median sale price around $350,000 and an average of 142 days on market across all property types. That's a lot of competition for a seller's attention, and it's a long runway compared to the frantic pace of a few years ago.

Breaking it down by area:

Notice the pattern — days on market across the board are stretching well past 150 days. Buyers aren't rushing, and insurance is one of the clearest reasons. Insurance costs, alongside sheer inventory volume, are consistently named as the top factors keeping out-of-state buyers from pulling the trigger on Florida listings. We're also seeing more sellers lean on "low insurance" or "insurance-free" language — meaning homes outside mandatory flood zones with manageable premiums — as an actual marketing point, not just a footnote.

What the 2026 insurance changes actually mean for you

This is where it's worth slowing down, because the statewide narrative and the Southwest Florida reality are two different things.

The good-news version: Citizens approved an average 8.8% decrease on homeowners multiperil policies effective July 1, 2026 — the first personal-lines rate cut the carrier has made since 2015 — with wind-only policies down about 5.5% on average. Citizens' total policy count has dropped 76% from its 2023 peak, which regulators point to as proof that private insurers are coming back into the market and competing again. Heritage Property & Casualty also got approval for a 6.4% rate decrease specifically in Lee County, effective February 18, 2026. Statewide, 48 insurers have requested rate decreases since January 2024, and the average rate request is now running about -4.8%, compared to +5.2% five years ago.

The reality check: none of that has translated into a dramatic drop for Southwest Florida homeowners yet. Lee County premiums are down about 1.5%. Charlotte County is down 1.3%. Collier County actually went up 0.2%. And the dollar figures that matter to your bottom line — and to your buyer's monthly payment — are still substantial: roughly $3,576 a year on average in Lee County, $3,160 in Charlotte County, and $5,344 in Collier County. As Mark Friedlander of the Insurance Information Institute put it, average premiums are declining — slowly, but they're coming down.

The gap between the headline and the homeowner's bill is exactly what you need to understand before you price your listing or talk to a potential buyer about carrying costs.

There's a second insurance thread worth factoring in if you're in the Estero area: FEMA has been revising flood maps in Lee County, moving some properties into higher-risk zones and a larger number out of them. We covered the mechanics of that update — including the appeal process — in our Lee County FEMA Flood Map Changes guide. If you haven't checked which direction your property's flood zone designation is headed, that's worth doing now, before a buyer's lender flags it for you mid-contract.

Timing considerations: should you list now or wait?

We get this question constantly right now, and the honest answer is: waiting for insurance to "fix itself" is probably not a winning strategy.

A few things point toward listing sooner rather than later:

On the other hand, if your home's flood elevation certificate or wind mitigation inspection will clearly show well under the county averages once the new maps or rate filings land, there can be a real case for timing your listing to lead with that advantage. This is exactly the kind of call that benefits from someone who's watching both the insurance filings and the local inventory numbers in real time — which is where a conversation with your agent, before you list, pays for itself.

Common seller mistakes in this market

We're seeing a handful of mistakes come up again and again this year:

  1. Pricing off last year's comps instead of today's 140-to-160-day market. With days on market stretched out across Naples, Bonita Springs, and Marco Island, a listing priced for a faster market just sits — and a stale listing becomes its own problem.
  2. Leaving insurance and flood-zone information out of the marketing. If your home carries a lower-than-average premium or sits outside a high-risk flood zone, that's a cost advantage for the buyer. Not stating it clearly means your buyer has to assume the worst, which is usually the SWFL average or higher. Our flood insurance costs and home pricing guide breaks down exactly what drives that number if you want to see how a specific property compares.
  3. Skipping a current wind mitigation or four-point inspection. These documents directly support a buyer's insurance quote — we walk through both in detail in our homeowner's insurance guide for Bonita Springs buyers and sellers. Without them, a buyer's insurance company defaults to more conservative — and more expensive — assumptions, which can shrink your buyer pool or your offers.
  4. Not disclosing known insurance or flood-zone changes. Florida's Seller's Property Disclosure obligations mean you need to be upfront about material facts. If you know your property is affected by the FEMA map revision, that's worth discussing with your agent before it becomes a surprise during a buyer's underwriting.
  5. Underestimating how much insurance shapes a buyer's offer. A buyer comparing two similar homes will often factor the insurance quote into their number before they factor in your updated kitchen. Ignoring that dynamic costs sellers real negotiating leverage.

How The Borg Group markets listings in today's market

This is exactly the kind of market where strategy matters more than luck.

When we list a home right now, we pull current wind mitigation and four-point inspection documentation up front, so buyers and their insurance agents have what they need from day one — not three weeks into a contract. We check where a property sits relative to the FEMA flood map revisions for Lee and Collier counties, so if your home is likely to benefit from the update, that advantage is part of the listing story, not an afterthought. And we price against the real current market — 140-plus days on market and tens of thousands of active competing listings — rather than against last year's pace.

Every seller's situation is different, and the only way to know exactly where your home stands on insurance, flood zone status, and pricing is to run the numbers with someone who's tracking all three in this market, every day.

If you're thinking about listing in Bonita Springs, Estero, Naples, or anywhere else in Southwest Florida, start with a free home valuation at theborggroup.com, or call us directly at 239-350-4474. We'll walk you through exactly where your home stands — insurance, flood zone, and price — before you put a sign in the yard.

Want a clear read on where your home stands before you list?

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Frequently Asked Questions

Are Florida homeowners insurance rates actually going down in 2026?

Yes, but unevenly. Citizens Insurance approved an average 8.8% statewide decrease effective July 1, 2026, and Heritage cut Lee County rates 6.4% in February 2026. In Southwest Florida specifically, the actual change has been modest — Lee County premiums are down about 1.5% and Collier County premiums are actually up slightly — so don't expect a dramatic drop in your renewal bill yet.

How much does homeowners insurance cost in Lee County and Collier County right now?

Average annual premiums are running around $3,576 in Lee County and $5,344 in Collier County, according to recent Florida Office of Insurance Regulation data reported by WINK News. Your actual premium depends on your home's age, construction, flood zone, and wind mitigation features.

Will FEMA's new flood maps affect my home's value or insurance?

It depends on which way your property moves. FEMA's revised flood maps for Lee and Collier counties will move some homes into higher-risk zones and others out of high-risk zones. If your home moves out of a high-risk zone, you may be able to drop mandatory flood insurance or qualify for lower-cost coverage, which can be a genuine advantage when you sell.

Should I get a wind mitigation inspection before listing my home?

Yes. A current wind mitigation inspection can lower a buyer's insurance quote significantly, and in a market where insurance costs shape buyer decisions, having that documentation ready at listing — rather than after an offer — keeps your home competitive and avoids delays during underwriting.

Is it a good time to sell in Southwest Florida given how long homes are sitting on the market?

It can be, if you price realistically. With roughly 142 average days on market across Lee and Collier counties and nearly 32,000 active listings, homes priced for today's pace — rather than for a faster market — are still selling. Waiting for insurance costs to drop further isn't likely to improve your position, since relief has been incremental so far.