Depends on the insurance you get. If you purchase the AT&T insurance for 6.99 a month they cover lost, stolen, and accidents. This is limited to alot of things, and have a deductible of 50-200 per claim. You can only claim 2 in 12 months. If you get the motorola insurance that they offer with motomaker they cover accidents, spills, drops (cant be sure), hardware malfunctions, surge spikes (may collect surge protecter, and etc... They do not cover lost, flood, wind, fire, acts of war, acts of god, and etc... This insurance is a 35 deductable i think(I know it's less than 40 dollars). While the phone is being repaired or replaced, they will provide a regular phone to use until your phone is fixed or shipped new. Ill see if I can find the terms and conditions for both and post