It's only for 120 days but, e.g. this is from one of Chase's cards: What's covered: "Eligible personal property that has been damaged, stolen, or involuntary and accidental parting with property within 120 days from the date of purchase"
This is in addition to a year of additional warranty protection and various other purchase protections.
That text wouldn't cover accidental damage due to your own fault.
It certainly does. Most of Chase's cards cover up to $500 per occurrence. The Sapphire Reserve, and I believe Ink Preferred, cover up to $10k per occurrence. There are plenty of accounts of people taking advantage of these benefits online.