I think insurance is important for events that you can't easily cover out of cash flow or savings. For instance, I never buy warranty plans on TVs, printers, etc, because I think the probability of needing it is a low and if one device needs to be replaced, it will probably be cheaper than paying for the warrantly for every device I buy.
For bigger ticket items, like a European vacation, I could see some value to buying travel insurance. That said, you want to be really careful with what counts as a reason you can cancel and get a refund. I would look into the reputation of the insurance company underwriting the policy and see if you can find any customer reviews. You also want to look at the cost for the insurance. If the insurance is 20% of the total cost, you have to believe there's a greater than 20% chance you'll have an event where you needed to file a claim. Hope that helps.
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