SquareTrade is a bit squirrely about their coverage, they give you the impression that they don't set limits but you have to dig to see that they limit recovery to the cost of the device:
"Coverage Amount
For replacement payments: You are covered up to the maximum value you paid for the item. Once we pay out that amount, your Care Plan is considered fulfilled. If you would like coverage on your new item, you need to purchase a new warranty for it.
For Repairs: The Care Plan is good for multiple repairs, up to the maximum value of your item. Once the cost of repairs meets the full purchase price of the item, your Care Plan is considered fulfilled."
So once their costs hit $499 (for the base iPad) your benefits end. Applecare+ has no such limits. It has 2 replacements with a co-pay but if you need warranty coverage in year two they will cover it without limitation.
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And if something does happen there's a good chance your getting a refurb.
So what?