will apple tell my insurance that my iphone is broken?

My iPhone has been playing up and eventually stopped working for unseen circumstances, i went to the apple store and said it was water damaged (i have no idea how as it hadnt touched water) but they required i pay £209 for a replacement device. I said no, not thinking about it as that is an large amount for how much i paid for the device and how it hadnt even been near water. They wrote it in the ipad what they use my IMEI number to track that i had still got the broken phone. Will my insurance contact apple and check my iphones background before accepting my claim?