Yes, is coverage.
exsample:
HV:
Cost of camera: $1000/-
Extended Warr. : Till 5years
So it mean for the next 5 years anything happen to your camera which is covered under the extended warr. will be covered for $1000/- for repair or replacement.
Courts:
Cost of camera: $1000/-
Extedned Warr. : till 5 years
1st year cover: $1000/-
2nd year cover: up to $800/- of repair/replacement
3rd year cover: up to $600/- of repair/replacement
4th year cover: up to $400/- of repair/replacement
5th year cover: up to $200/- of repair/replacement
Understand?