I believe you are referring to PMI, private mortgage insurance that lenders require on loans not guaranteed by the federal government, such as VA loans. I specifically mentioned homeowners insurance.
Not to start an argument, but you were not clear what you meant. The people you are referring to may not be directly impacted, but there will be some form of ramification for some of them.
To be truthful, I understand your point that it is the taxpayer that usually stands the jerk while many get a free ride.