I got mine through State Farm (where I also have my car, renters, and motorcycle insurance). They don't do it in every state, apparently, but they do here in Kentucky. My agent said they don't do iPhone insurance specifically anymore, but they now call it a Personal Electronics Policy.
$41/year with no deductible. It covers everything (drops, theft, fire, water damage...everything). Well, ok, it covers everything but (straight from the policy):
1. War, including
a. undeclared war
b. civil war
c. insurrection
d. rebellion
e. revolution
f. warlike act by military force or military personnel
g. destruction, seizure, or use for a military purpose
h. any effects of any of these
2. Seizure or destruction under quarantine or customs regulations
3. Any order or law of a governmental or municipal authority
4. Risks of contraband, illegal transportation or trade
5. Nuclear hazard, meaning:
a. any nuclear reaction, radiation, or radioactive contamination, all whether controlled or uncontrolled or however caused
b. any effect of any of these
Loss caused by nuclear reaction is not considered loss caused by fire, explosion, or smoke. Direct loss by fire resulting from the nuclear hazard is covered.
7. Vermin or insects
So, as long as I'm not caught in a war (declared or not), not seized by the government, not transporting drugs, guns, or any other illegal contraband, don't let bugs overtake my phone, and as long as the phone survives the initial nuclear blast, yet gets destroyed by the fire afterward, I'm covered. LMAO!!!
This gave me a good laugh when I received the policy.