I'm considering buying extended warranty for my camera body and lens which cost me about the same amount of money. But once I start adding up the cost, insuring both with accidental warranty takes a big chunk of change. I suppose that when it comes to accidents there's more likelihood of dropping the lens only, than the body only. But how much piece of mind will you get from insuring a lens that will be attached to the camera body 90% of the time and not the camera body as well?
And what about just an extended warranty for mechanical failures? Is the camera body more prone to mechanical failure than lenses? And which mechanical failures are expensive to fix? 2 to three years down the row, you know your lens will be worth more than your camera body. But from everything I've read, fixing zoom and focus rings and IS often come out cheaper than fixing a camera body that has a part that failed.
With mechanical issues, if you want the piece of mind, probably just the extended warranty will do without the accidental damage coverage. However, I don't know if I trust anyone to service my equipment other than the manufacturer.
I'm a gadget person myself, and I usually feel more comfortable getting extended warranties, because I've used them several times and got my money's worth. However, I don't buy them on my camera stuff because in my experience it seems that everything that will go wrong on a camera, usually happens within the first few months <knock on wood>.
For accidental stuff, that's why I have insurance. I have $8k worth of stuff insured and it was only around $120 a year. Or, State Farm gives you the option to pay per month if you can't afford to do it at once. $10 a month is well worth knowing my equipment is safe under any circumstance.