I've read up a bit more... it seems that it doesn't cover water damage or theft. Aren't those both covered in the Verizon Insurance?
from vzw site:
Does Verizon Wireless offer Total Equipment Coverage against lost/stolen/damaged and defective equipment?
Yes, Total Equipment Coverage combines the benefits of Asurion’s Wireless Phone Protection with the Verizon Wireless Extended Warranty program. If your device or covered accessories are
lost, stolen, accidentally damaged, or malfunctioning due to a manufacturing defect after the manufacturer’s warranty expires, you are covered. Verizon Wireless customers can only enroll in Total Equipment Coverage within 30 days of new account activation with a new equipment purchase."
--still looking for water damage
--from what i'm seeing, Water damage is Not covered, though could be factually proven wrong--
at that point, i'd take it to a local independently owned phone repair center (they're actually common)--just
don't attempt to turn on the phone before taking it there. see if they can repair it--if they can't, file the LostPhone claim with Asurion. i've been told by Asurion reps via the phone, simply file a 'lost phone' claim, and pay the $99 deductible. the water-damaged phone ESN is blacklisted (can't be used on VZW ever again), and you're sent a new/refurb phone for the price of the $99 deductible.