I think almost everyone is terrified of insane asylums. Think of all the horror movies that have taken place in one. American Horror Story set its second (and best) season within the walls of a '60s asylum. They're scary because they force us to confront the fact that our brains can turn on us any minute and turn us into an entirely new person.
There are plenty of famous insane asylums. Some are scary because of reported paranormal activity. Some have horror stories about what went on between the walls.
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5 INSANE ASYLUMS AND THE HORRORS THAT HAPPENED THERE
HorrorFrom the birthplace of the lobotomy to a school for disabled children with "zoo-like" conditions, go behind the locked doors of history's worst institutions.