2 cents worth.
A. Unless the bike is still under factory warranty no reputable underwriter will accept the policy. If you're out of warranty and some one is offering you the coverage, run to the nearest exit. Either the underwriter is crooked or the Dealer is.
B. If the bike is still under factory warranty $1000 bucks is too cheap. Knowing something about the loss ratios associated with these bikes the underwriter doesn't know what they are doing and will not be able to afford to pay claims. You can argue about what the contract says until you are blue in the face, but in the end you will get hosed. Period.
C. No one can sell you an extended warranty. What they can sell you is an extended service agreement. (Legal semantics, but important.) If you want to know something about how to choose a quality extended service contract spend some time with google and the terms "admitted insurance" vs. "risk retention", and "Administrator Obligor" vs."Dealer Obligor." Then look the Dealer straight in the eye and ask him to explain them. If he can't, he has no idea what he is selling you and his ignorance will be your nightmare.
Best of luck.