Yea, insurance and extended service plans are full of loop holes. Any way they can find the exception, they sure do.
Wind damage took shingles off the roof of my mother's house. Insurance covered the claim for replacing the shingles. Contractor came out for the estimate. Said the wood under the shingles needed to be replaced too. Insurance paid for the shingles, but not the wood holding on the shingles. They said there was no wind damage to the wood, but the wood had to be replaced to hold the shingles. Mom ended paying out-of-pocket the cost for the wood.
There's always loop holes. I don't like extended warranties.