In 2008 I bought on ebay a desktop computer for $700.
Square Trade offered me a 4-year warranty for $133, with the following proviso: If the unit needed repair, a tech would come to my home to perform it, and if repair would cost more than I paid for the machine, they would refund me the full amount of the machine.
A few months ago the machine failed, and the tech installed a new motherboard and GPU. It seemed to work well, however, just recently a problem appeared.
I advised Square Trade, and they are crediting me for $700 with PayPal, less the amount of the previous repair. They said the machine is still mine and I am free to do with it as I wish, including spending the amount they deposit in PayPal on a second repair.
BTW, just recently, Square Trade announced that they will sell warranties not only for purchases on ebay but also for purchases made elsewhere, provided the warranty is purchased within 90 days. The prices are VERY competitive.
http://www.squaretrade.com