Get the insurance!
I owe the Mall of America ATT store a world of props. My phone was stolen from my purse at dinner, probably were trying to steal my wallet and that happened to be on top. I caught it quickly, and went to the ATT store. We watched it drive off on find my iPhone. Since I was not eligible for an upgrade, I had to shell out for a new one, thankfully at a small discount. But I didn't have anything more than AppleCare and Squaretrade, so I was on the hook.