I've already lost one iPhone to a fall. Square didn't offer accidental protection for the first month or so, and since I got mine day 1 I couldn't get coverage. Which sucks.
But, I was happy to find out Apple only charged me 200 or so for a replacement on the 4gb model.
Source: http://ask.metafilter.com/71254/Is-Iphone-insurance-worth-it#1062078
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