Liability insurance is cheap, but not comprehensive from what I found when I was shopping around. Since I only rode it on trails, it didn't make sense to pay for an insurance policy that had a $500 deductible on a loss for a bike the insurance company would value at around $1,500 or so. The chances of it being destroyed in a fire are extraordinarily low, but as I found out, it does happen. In any event, I'll probably start looking around to see what's out there.
Like everything else outdoor related, the prices of used bikes are sky high right now, so it may take a while to find a reasonably priced bike that fits me....