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An extended warranty or total care packages can be a wise investment. 
We are heavy users of our digital equipment and problems can arise. Having the piece of mind that when your equipment is out side of the manufactures warranty you have a back up care package
Most extended warranty companies will cover the equipment for the same failures as the manufacture. If the unit is found to have impact, sand or water damaged the warranty will be void.
Ted's Camera Stores have a very reasonable Total Care Package.