In Australia one of the home and car insurers charges something like $2/week extra when you have their home and contents insurance also. It has an excess of $50 and pays "upto" $500.

I'll be the first to admint I'm not a pet person but even then I don't think it's a real good deal. I think you'd be better off investing that money particularly given the limited claim amount. It's not like car or home insurance where the premium is such a small percentage of the potential payout. Insurance is essentially a gamble and the odds aren't good IMO...