We've used the extended warranty for just about every computer we've ever owned, my daughter just sent her ipod in for a replacement and we've replaced several handheld game systems as well as PS2s (when they first came out.) When Dell did a system replacement, they actually upgraded, which I did not like, had to change operating systems. We also carry insurance on our cell phones, daughter has had her palm replaced three times (kids and cells :-( )

And I do agree with Sky on the flood insurance, our regular policy does not cover any water damage at all. We live about four blocks from the river and prior to 3 years ago it had not flooded in decades, it has flooded every year since 2005. It doesn't take a lot of water to create "serious" damage in a finished basement.