IPhone 4 has collapsed lock button and Wifi no longer working. Replacement?

Hello and thanks for any help in advance.
Recently my iPhone 4's lock button collapsed and it is now longer functioning. In reaction to this I visited the Genius Bar and they informed me that it could not be repaired and that I was required, due to my warranty being up, to pay £120 for a replacement. This was as much as I expected at the time. However, shortly afterwards the wifi connection stopped working and my iPhone can no longer sustain connection outwith 2m from the router.
I then phoned my insurance company with this problem, and they informed me that I willbe unable to claim for a replacement as it is a manufacturing defect and not damage. Despite my warranty being up, is there any grounds for argument that such a hardware defect, outside of my control, is reason to claim for a free or reduced price replacement from Apple?
I am unsure where I stand. I have had this phone since May 2011 and it seems ridiculous that a phone that comes with a 2 month contract cannot last, without accident, for the same duration.
Thanks again,
Jamie

The device comes with a 1yr warranty when purchased new, that's it.
Whether there is one or multiple problems with the device is irrelevant.  The fact that a hardware failure occurred outside the warranty period is also irrelevant.
Your options are:
Live with it.
Pay the Out of Warranty cost to get a replacement unit
Purchase a used device online
Purchase a new device at full retail cost.
Apple has nothing to do with and did not force you to sign a 2yr contract.  The vast majority of users never have a hardware issue.  The fact that your device has experienced two hardware failures is merely a fluke.

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