Sorry to hear about the phone Asurion claims are usually pretty seamless though and the turnaround is typically quick. The fact that they cover loss and theft when A-care doesn't makes it well worth the price. Make sure to put the replacement unit through all possible paces the first week to make sure it's a clean refurb.
2) Definitely will use the hell out of the phone for the first few days. Yeah, in the past I've used AppleCare+, but I take pretty good care of my phones. Loss and theft are the bigger issues for me. Luckily I wasn't working on my uninsured Nexus 4 today.