I use to sell those warranties and I know for a fact I told my customers (as I was told to do so) it is 'accidental' coverage. NOTHING intentional (I.E. baseball bats, screwdriver through the hard drive) now I also remember looking into the warranty myself and I believe it WAS something like 2 cracked screens covered?

ALL IN ALL, its great - but I still recommend backing up information like always on any computer. And not abusing the warranty especially if you don't even have the basic knowledge of its coverage.