That depends. We got one paid for by the seller of our house and in the first year it paid for an HVAC repair and plumber. I renewed it once for $600/year and wound up getting our refrigerator replaced in-kind, probably a $1500-2000 machine.

I decided my luck had run out and so I _did not_ renew it again, and we haven't had any other issues that _would have been covered_ since then, so I think I played my cards right.

I don't think they are a scam, but they are an insurance product, and insurance products have a lot of detail that need to be understood before you can decide whether it meets your needs or not. It's not a panacea to home-ownership woes.