Most phone carriers (Sprint, Verizon, T Mobile, etc.) offer insurance on their phones. Depending on the carrier, there are a few different types of insurance coverage (standard and total equipment). The monthly cost is between $4-$8. If your phone is lost, stolen or damaged, you can make a claim with your carrier, pay your deductible and the insurance policy would pay for the rest of the cost for a replacement phone. Keep in mind, the purchase price of the phone is different than the replacement cost of the phone. For example, I have a Blackberry Tour that I recently bought from the store for $150; although the carrier has already informed me that the replacement cost is $500. I decided to buy the insurance on the phone for $6 a month. If I lose the phone, I have to pay the $100 deductible and then I would get my replacement phone.
Some companies don’t offer insurance for higher value phones (iPhones…for example). In this case, you may be able to obtain coverage on your home or renters insurance policies. You should check with your insurance company. It may be considered part of “personal property”. If so, you will only have coverage if there is damage due to a covered peril (theft, fire, water damage from a pipe bursting, etc.)…and you still have to pay your deductible first. On a home policy, deductibles are typically higher ($500 or $1K or $2500).