Wait! If your house burns down, you are better off to have nothing to pay the mortgage and just go bankrupt, then pay the mortgage with saved money. When you not saved, you spent it somehow and they can't take that consumed pleasure away from you.

For example, you spent money on education or beautiful journey in tropical countries. Then come back and discover that the house burned down. Ok, you have no money to pay the mortgage, so you go bankrupt. You take away good emotions from the trip and your education.

Alternatively, you saved the money, then the house burned down and you pay the mortgage with the sawed money. You are worse off now. You could have received education and the trip, but instead gave the money to bank!