This is actually the reason I'm insuring my house with the same company that holds my mortgage, so at least I don't have to pay the mortgage if they're wiped ou

This is actually the reason I'm insuring my house with the same company that holds my mortgage, so at least I don't have to pay the mortgage if they're wiped out in such an event. I like this logic. My only concern would be that, in many cases an insurer might have a clause to pay cash or rebuild, their choice. Or some other conflict which may cause issue with the mortgage holder (many mortgages can force sale in certain circumstances). But I like your premise, and will poke at it here.