This is actually a legitimately good idea. The whole purpose of the mortgage interest deduction is to encourage home ownership. Property taxes are already deductible too. For most people, a mortgage payment is comprised of 4 parts - interest (deductible), taxes (deductible), principal (not deductible, but is tax advantaged at sale for a principal residence), and insurance (not deductible). The only part of home ownership that doesn’t have a tax advantage baked in is the home insurance… it makes sense to make it deductible.