Temp-to-hire offer, worth it?

I got a contract offer for 16 months as a production planner and I am unsure whether to accept. I am in Phoenix, in case local advice matters. The contract could extend. What would you do?

If savings are low, I would accept and keep applying. You can leave for a permanent role if one appears.

Buy coverage through the marketplace if the contract has none. I budgeted for it before signing.