I haven't seen the extended warranty that everyone is buying so I am not 100% sure on this, but with it being a 3rd party insurer, they may require professional installation, and proof of it to warranty your Z1 if it does break.
I have had experience with a couple of these 3rd party insurance companies and they will find every last excuse to get out of repairing the problem. For example, I recently took a 6 month old laptop to a very large, national electronics chain. I purchased the extra warranty from them, so they said bring it in to us and we will fix it. I took it to them and after a few days they called me and said they can't fix it under warranty. They wanted $700 to fix it. The thing is, it was a warranty issue, a guy in their own store admitted many of the same make of laptops had the exact same problem, in fact I told him the problem and he told me the brand of laptop! Needless to say I told them to shove it up their asses and I will take my $10,000 a year electronics habit business somewhere else. With it being under manufacturers warranty, I decided to take it to an authorized repair center, sure enough, they fixed it under warranty and no cost. I didn't mention any thing about my previous issue with the other retailer, I didn't want any sympathy. So buyer beware, yes these warranties are a scam. Don't believe a salesman when they say they fix anything short of obvious neglect/abuse. They don't and it's kind of difficult for you to force them to do it. Can it be done? Yes, if you have the time and money to fight them legally, but for most people that buy the warranty, they don't have the money to replace something this expensive, so the warranty is very enticing.
That's just my $0.02