In case you missed it, Apple have released a new version of AppleCare for the iPhone – AppleCare plus.
All the usual stuff but covers you for up to 2 incidents of accidental damage (via handling error).
So if you are like my wife and drop your phone in the loo, you can get covered under Applecare.
Subject to a handling fee. More info here
http://store.apple.com/us/product/S4575?mco=MjU5MTk4MjQ