Just to add my story.
I smashed my screen on my then 3G, rung up bank phone insurance, sent it in to them bla bla, it came back like your 4 has come back, screws missing etc.
I rung up and complained and the end result was they offered a new (or refurbed) 3g and my excess back. Except the 3G had stopped being produced and I guess there were no refurbs available so I ended up with 350 cash and my 30 excess back.
Halifax charge £100 excess now for iPhones btw so I assume they have had loads of trouble and changed to a better repair company, or probably to stop people putting in false claims.