Insurance companies (with quite logical grounds), have strict exclusions in policies. They might differ according the specific case and type of insurance cover, but in general terms, companies protect themselves either from events that could lead to a massive payment (which would mean their bankruptcy) like natural catastrophes or acts of war, either from a personal decision of the taker, that might involve high risk activities or irregular situations.
It could be said that something similar happens in the “market” of real estate mortgages, where if a structural event might occur, that would also lead the banking system to its collapse (sounds familiar, doesn’t it?). Because, in my humble opinion, it’s completely different cases, should individuals fail to pay their debts, due to personal reasons, than if hundreds of thousands are affected by a global crisis.
But, the thing is that financial crisis are not natural catastrophes. Let alone, comparing mortgages takers with bungee jumpers, or skydivers, or heli-skiers.
This leaves me, I could say the least, restless, the most, furious, whenever new proofs arise that the current synchronic financial crisis (which I’d swear is just only one), has been generated by unpredictable forces of the financial markets, supposedly under the survey of Stock Exchange Commissions, governments and all kind of virtual organisms of control.
It’s an extremely profitable business to protect yourself from the devastation you cause.