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When purchasing my first contract mobile, a Nokia 7110 on Orange Everday50, I was offered Carphone Warehouse LifeLine cover. I suppose that I was talked into it a bit by the salesman, but I am now glad he talked me around.
The option I bought was LifeLine Complete. It not only covers phone defects and breakdowns but theft / water damage / loss and accidental damage.
Whilst on the way home from a night out I lost my handset. Next day (a sunday) I went to the local branch, who with a police report replaced the phone on the spot with the newer 6210e and did all the re-registration with orange.
Also the £90 of unauthorised calls that were made when the phone was stolen were refunded within 30 days of me recieving my bill.
A worthwhile service for weekly drunks like me. :)