I usually don't buy insurance for things like this as it's a rip off. But I did get the carphone warehouse insurance for my O2 iPhone as I was led to believe that you can't just buy a new one and reactivate it.
feeds.cellphoneforums.net/~r/CPFMain/~3/184553229/t262199-uk-iphone-need-insurance-consequences-loss-damage.html
