A friend of mine went out and bought a new I-Phone. Loves it. Nearly $800. "Did you get the insurance?", I asked rhetorically because I was sure he did. "No. Phone insurance is not the best insurance for your I-Phone. It usually doesn't have 100% replacement coverage and has a deductible. I insure my phone under my homeowners insurance. No deductible, 100% replacement coverage for about 1/3 the cost of the phone store's insurance."
Now, the insurance doesn't cover mechanical failures only loss, theft, irreparable damage etc., so if the phone quits working, you might have to pay the cost to have it fixed. So, check closely the warranties before proceeding. And, of course, all homeowner's insurance policies are different, so check that too.
Just a thought that might save us all some money.