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Buying insurance is the act of taking a stand, in $, on risk. You're saying something like, "the cost of recovering from a disaster times the probability of it occurring is greater than the total cost of insurance from now until the risk is gone."
If you can tell that the potential cost is not worth the insurance cost, it's a bad bet. The risk is still there -- but the risk was still there with insurance, too. And it's easy to get intimidated (legitimately, perhaps), since, unlike poker, you don't typically play more than a hand or two.
I love writing righteously indignant letters, and I liked reading yours.
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