▁typically ▁ex cluded ▁from ▁home own ers ' ▁ins urance ▁to ▁avoid ▁pay ing ▁for ▁the ▁consequence ▁of ▁reck lessly ▁bringing ▁in ▁a ▁used ▁mat tr ess . ▁ ▁Ins ured ▁events ▁are ▁generally ▁those ▁outside ▁the ▁control ▁of ▁the ▁customer , ▁for ▁example ▁( typ ical ▁in ▁life ▁ins urance ) ▁death ▁by ▁autom obile ▁accident , ▁contrast ed ▁with ▁death ▁by ▁suic ide . ▁ ▁Cor related ▁losses ▁are ▁those ▁that ▁can ▁affect ▁a ▁large ▁number ▁of ▁customers ▁at ▁the ▁same ▁time , ▁thus ▁potentially ▁bank rupt ing ▁the ▁ins urance ▁company . ▁ ▁This ▁is ▁why ▁typical ▁home owner ' s ▁policies ▁cover ▁damage ▁from ▁fire ▁or ▁falling ▁trees ▁( us ually ▁affect ing ▁an ▁individual ▁house ), ▁but ▁not ▁flo ods ▁or ▁earth qu akes ▁( which ▁affect ▁many ▁houses ▁at ▁the ▁same ▁time ). ▁ ▁Other ▁forms ▁ ▁Real ▁estate ▁under writing ▁In ▁evaluation ▁of ▁a ▁real ▁estate ▁loan , ▁in ▁addition ▁to ▁assess ing ▁the ▁bor ro wer , ▁the ▁property ▁itself ▁is ▁scr ut in ized . ▁Under writ ers ▁use ▁the ▁deb t ▁service ▁coverage ▁ratio ▁to ▁figure ▁out ▁whether ▁the ▁property ▁is ▁capable ▁of ▁re de em ing ▁its ▁own ▁value . ▁ ▁For ens ic ▁under writing ▁For ens ic ▁under writing ▁is ▁the ▁" after - the - fact " ▁process ▁used ▁by ▁l enders ▁to ▁determine ▁what ▁went ▁wrong ▁with ▁a ▁mort g age . ▁For ens ic ▁under writing ▁is ▁a ▁bor ro wer ' s ▁ability ▁to ▁work ▁out