Read the limitations real carefully. Personally I have never seen an awning wear out in three years. My 12 year old awning on a previous RV was in great shape when I traded the rig in...sun beached a bit but in good physical shape. So what are you protecting? Does it cover high wind damage? I've seen the wind in Las Vegas and recently in Indio make a mess of an awning. But is that excluded or covered?
I damaged my awning when I brushed a tree and broke the awning arm. This was covered by my RV insurance.I often purchase extended coverage on complex products that are expensive...TV's, Computers, cell phones. I don't purchase warranties on products that can be replaced reasonably cheaply...small tv's, most hand power tools or electronics under let's say $200, etc.
Thinking awning, what can break? Your gamble.
Happy Trails.