What does self insured mean?

In order to cut back on some expenses we were wondering about just getting rid of the insurance on the homes we own in the park; or at least maybe cut the value in half. I’ve read that some owners are just dropping all insurance coverage on the homes they own and was wondering if that is a good idea? We have 2,000,000 liability on the park itself and agent says I don’t need to cover each home because if a home burns up and we are sued the general liability policy above will cover. But, with no insurance i would have to repair or replace the home at my expense. Any comments?