People are actually insuring a $200 item? That's the real news item here.
It’s a $250 item first of all. Second of all, uhh why not? $29 is slightly above 10% of the AirPods Pro cost. Unlimited free replacements if there’s no physical damage and the AirPods Pro or Case are actually not working properly. $29 if there is damage.
I hope you’re not implying that because they’re so “inexpensive” that people should just buy a whole new set if something happens...