RayV wrote:

My father used to tell me, "Life insurance is the worst bet you can
ever make. You're betting that you'll die; they're betting you'll
live".

Well, the obvious answer is you buy life insurance for the beneficiary,
not for you...

....
How much $$$,$$$.$$ would it take to replace my tools in the event of
theft, fire, etc.?

Would the insurance company pay replacement price or some concocted
devalued amount giving me pennies per tool?

Depends on the terms of the policy--whether it is replacement value or
market value. How much total liability for major tools is included in a
standard homeowners policy w/o a specific rider is probably limited to
something fairly small...

How would I prove what I have? A fire would burn up the folder with
the receipts and that is only the receipts for the big-ticket items(not
one in there for the two $50 dollar screwdrivers).

You keep copies in either fireproof locations or better yet, somewhere
offsite that is readily accessible in the event of a disaster. The same
is true of proving value/contents after any disaster, not just fire.

Yeah there is furniture, appliances, clothing and other stuff in the
house but what about the tools? Any experiences with tool losses and
insurance companies?

See above...