Guessing you have an iPhone 4 and taking it to Apple. For $150 + your iPhone, they'll hand you a refurbished unit.
Yes it covers both, (because they are 1 unit). Why not spend the $150 and get a new color swap http://www.google.com/#hl=en&sclien....,cf.osb&fp=297cffb4fb1be379&biw=1172&bih=585