Home Warranty: To Renew or Not?

So we got our Home Warranty renewal in the mail. When we bought the house almost a year ago, it was a gift from the seller. So now we are looking at the prices for 1st time. The renewal fee, for one year, is $425. Plus, every time we use the warranty service, which has been 3 times so far in the past year, we still have to pay a service fee of $60 each time.

S and I discussed it, and we're leaning towards NOT renewing the home warranty. I figure I can put that $425 into savings, and if anything breaks down--washer, dryer, fridge, etc.--we can just buy a used one off of craigslist.

Now that I'm registered on msn money boards, I might pose the question there. They're an opinionated group but I have learned from their own experiences!