You have basic protection with it which will cover faults that were present at time of sale or fitness for purpose (e.g. a product may be reasonably expected to last a certain amount of time) but they don't necessarily need to refund you in full or give you a direct replacement, and it's not just for the 12 months people think it is. After 12 months you're not completely screwed, you do still have rights.
It's better than nothing, but not equal to the extended warranties they offer (which will often increase the length of time you're entitled to a replacement of equal or higher value)