iPhone Insurance - Apple Care or Verizon? New user

You should also check your homeowner's insurance, and see what it covers and if you can add a rider to cover the phone. It will almost certainly be less than Verizon's coverage.

What these guys have said is pretty good. it is correct that APPLE does the replacing.

I have a brand new iPhone 4 I got for my birthday last year, and Apple covered it when it became unusable. Sine the one I have now is a replacement, the original warranty covers all hardware issues untilk May of this year, then it's 149 bucks. The guy at the Apple store was cool enough to give me a new Phone, even though he detected my user modifications, their policy is to not replace an iPhone if it gets bricked, but I think they way it is, if the phone absolutely will not work, they have to give you a new one if it is still under warranty.

Now, this covers stuff like Water, Dropping, Cats doing things, any issue that causes you to lose access to your phone. This includes user meddling, according a friend of mine who told me there was some big court case and Apple was found Liable to their Warranty regardless. Which just makes sense, because even Dell or HP stand by their warranty and a Home PC gets User-Modifies the moment you bring it home.

The difference being, Apple considers their OS part of the device, but I guess a court disagreed with that. And I know that they were probably able to take that Bricked iPhone and unbrick it, and give it to someone else.