Non-term life insurance seems a good counterpoint. The price of the insurance may equal effectively a second mortgage over some timeframe but it can be priced.
In reality the risk of loss across the region is not nearly as high as implied.
Non term life insurance is a waste of money ignoring any tax advantages that don’t apply for most people since you can just directly invest the premiums in a low fee index fund and not pay the overhead costs of the life insurance company.
If the price of the insurance was so high that it was a second mortgage, then that would still devastate real estate prices and still cause economic decline in the region.
In reality the risk of loss across the region is not nearly as high as implied.