It was crazy: I watched as my droid jumped out of my jeans pocket, scooted along the grass and jumped in the jacuzzi for a soak.
My point is, unless you think of your phone 24/7 (I don't), accidents can happen. I take care of my phone and give an extra thought if I really need to bring it to the beach (sand+glass=no good), by the pool, etc. The insurance can be a good investment for some. It is not a 200-300 dollar device, it is a 650 dollar device. A device which most people use and rely on a lot. A device that is subject to getting damaged in many ways.