it covers anythig that happens to your phone. doesn't matter if you get it wet drop it and break the screen, it crumbles into a million different pieces, its lost or stolen. it's a little different from the manufactors warranty because the warranty only covers against defects that's it
there are two different price plans, and they are based on 3 tiers low mid and high
low tier phones are going to be 3.99$/month ad a 40$ deductible. your entry level phones like your nokia 6030's, nokia 2610, samsung stripe, samsung 209, etc
mid tier phones are going to be 5.99$/month and a 70$ deductible your motorola rizr's, samsung t629's etc
high tier phones are going to be 5.99$/month and 110$ deductible. your blackberry device's, sidekicks, window's mobile device, motorola krzr's are all in this tier
hope that helps