HousingWire quotes Toby Wells on rising insurance costs—and how our industry can step up
Across the country, homeowners are facing mounting financial pressure as insurance premiums continue to rise. For many, it’s not just an added expense—it’s a direct threat to their ability to afford their monthly mortgage payment.
HousingWire turned to Toby Wells, President of Cornerstone Servicing, for perspective on the issue.
“Affordability is already a challenge for homeowners, and insurance is just another catalyst making it more difficult for a lot of consumers to continue making their payments,” Toby explained. He noted that these affordability pressures ripple out to mortgage servicers and subservicers, who are managing a growing volume of inquiries from people struggling amid skyrocketing insurance costs.
The cost of home insurance has increased an average of 60% in the past 5 years, and HousingWire notes premiums are expected to rise an additional 8% on average in 2025, according to data from Insurify.
The challenge is clear: when premiums spike, risk grows—not just for homeowners, but for the entire housing industry. Subservicers are uniquely positioned to play a stabilizing role.
How servicers can support homeowners
At Cornerstone Servicing, we’ve seen firsthand how proactive engagement can make a meaningful difference. Our approach centers on:
- Timely and actionable notifications when tax and/or insurance bills increase, instead of waiting for the next routine escrow analysis.
- Educating homeowners about insurance options and strategies to manage rising costs.
- Offering resources to help homeowners find the coverage they need at a lower price—a growing challenge in today’s complex and volatile insurance market.
- Leveraging data to forecast default risk and offering relevant resources to help.
- Maintaining a great homeowner experience, ensuring accessible and reliable support throughout the life of a loan.
Looking ahead
As insurance challenges grow, servicing will continue to play a critical role in managing default risk. Timely communication, helpful guidance and resources, and reliable support from people who care helps homeowners stay on track.
For more on how insurance costs are reshaping the servicing landscape—and ways our industry can step up—read HousingWire’s full article.