Insuring against small losses is a waste of money.

You've got to factor in the margin of the insurance company, but also the time and expense of claiming, keeping records, reading insurance terms, the potential for the claim not to be honoured etc. Better to self-insure - put that money aside into a fund and use that fund to cover your loses for small amounts.

For large losses that you may not have the capacity to cover, it is usually sensible. Where to draw the line depends on how deep your pockets are.