we've always had insurance. here in oz it's called; "contents insurance". as smilingblueyes
said, can you afford to replace everything in the case of loss?
$12 a month for peace of mind would be well worth it i think.
i guess you have to decide whether or not to risk omitting having it. if you decide not to have it, i'd recommend putting the $12 you'd have paid each month into a replacement fund, and then if you do need to replace something, you've got the money, but meanwhile the capital is in your
bank earning interest. it wouldn't be a lot of money at $12 a month, but it'd be better than nothing. only you can decide which way you'd want to go.
personally, i'd take out the insurance.