T-Mobile insurance, dont understand it?

Genadii

New member
Im thinking of buying the iphone 4 with insurance but i dont understand what is excess claim.
http://www.t-mobile.co.uk/shop/mobile-phones/phone-insurance/cost/
thats the link.
So it says Excess for first claim - £20 (on the £4.99 monthly cost tariff) - so what does that mean? That if i lose my iphone they will replace my iphone but where do the £20 pound come in? What do more do i gain if i go on a higher tariff and respectively those excess claim money go up as well.

I really have no idea what all of these things mean. Could you please explain it to me.

Thank you in advance!
 
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