02 Insurance is it worth it?

Hi,
I know there is a big discussion post regarding the Insurance of the Iphone however it seems to be a slagging match between CPW and O2, but basically i want to know whether anyone has taken up the 02 insurance of £7.99 and if anyone actually thinks its worth it.
My point is with the accidental damage, i don't understand how O2 can clarify the difference between accidental damage and damaging your iphone on purpose (not that anyone would actually do that) but so if you accidently drop your in water, will they replace it? or if your iphone has been dropped a few times and got a few nasty scratches on it and you fancy a new iphone, can you just drop it into water and use your insurance to replace it.
I haven't got insurance yet as i am hoping to look after my phone without damaging it but am worried about dropping it etc. so am thinking of insuring it with O2.
Also you can cancel your insurance at any time, so for the first few months you can pay the £7.99 and obviously once the novelty of owning a iphone passed you can cancel it.
Does Insurance cover cracked or deep scratches on the screen?
It seems to me that people seem to have the Iphone covered on there home insurance is this a better track to go down?
regards

Hi - just to say that I was going to get the 02 insurance but thought I would contact my home insurance company first to see how much they would charge for cover. I was told that on my insurance, the phone is automatically covered worldwide for accidental damage and theft - I did not have to pay any extra. Result..!! Try your home insurance - the phone might already be covered on your policy or if not, it may be cheaper than the 02 insurance. By the way don't go with CPW insurance - did you see Watchdog this week?

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    Note that Apple care does not cover damage to the MBP whether intentional or accidental.  Should you drop the MBP, there is NO coverage.  It cover manufacturing defects only.
    If you are very much a novice to computers, 1 to 1 has virtue.  Otherwise most of your issues can be addressed in these forums.  An inherent problem with 1 to 1 is that there will be a very uneven quality of the instructors.  You may get a good one, you may not.  Luck of the draw.  Having knowledge and being able to teach others do not go hand in hand.
    Ciao.

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