Best Buy offers insurance on their items... we have used that insurance twice and can proclaim that it was PAINLESS! We first used the warranty on our PS3 that died 2 months before our warranty was up. No Hassles, No trying to haggle out of their end of the contract.
Our daughter got a Droid X 2 months ago and when she was playing basketball outside the DroidX fell on the ground and shattered... it was still functional, but the glass was destroyed. Best Buy did not even blink... just said 'Oh, we see a lot of this.' 3 days later we had an entirely new phone!
I have been impressed!