I suppose that's the correct phrase to you. To me it's self-insure. It doesn't really matter as you can call what you wish. We choose to forego insurance for a lot of things in life. I prefer insuring big things and being uninsured as you say for countless small things... and I consider that I am taking on that risk and therefore comfortable calling it self-insurance... but, again, it doesn't matter. Call it as you wish.
It depends on how you look at it. On average we are the idiots for paying for insurance because, on average, we will spend more on insurance than the insurer will pay out. By definition that's how it works. I personally would at least want a liability policy but she can easily rebuild if she gets a million in repairs so no biggie... and, over the course of her lifetime she'll likely come out ahead financially!
I think the reason it's a topic is because she is a public figure who gives financial advice. Most people can not afford take on that risk and shouldn't self-insure. Thus, it's probably not smart for her to be talking like that as some of her followers will undoubtedly follow suit.