I think this insurance debate is all about intent, which no one can really prove.
Its stupid to say that insurance shouldn't cover a rooted/bricked phone, since it covers loss, damage, or theft.
If I leave my phone at a Starbucks and come back 8 hours later looking for it and it's not there, then it's covered by insurance, but if I try to load a modification on it, it isnt?
Isn't that what insurance is for? If it was a defect that wasn't your fault, wouldn't it be covered under the manufacturers warranty anyway? I mean why would you use insurance? If you're phone was dropped, you were being careless. If you're phone was lost, you were being careless. If your phone was stolen, you should have been better at protecting in it, if it shorted out by being in the rain, you were being irresponsible. Short of someone robbing you at gunpoint, or breaking into your car/home, all of these things seem to be like negligance on the owner's part. Why wouldn't rooting the phone be put into the same category?
I agree 100% that a rooted phone shouldn't be covered under the manufacturer's warranty...even if its a hardware issue. Overclocking *could* create more heat and fry something (dont' think you could prove it, but also don't think you could prove against it). Some crappy software mod that sends the radio or the processor in a loop could be a bad thing....I get that too.
The deductable is $100 and the monthly fee is what? Like $6? I'm not sure if Verizon skims anything off the top. How much do you think a reconditioned phone costs them? I'd bet it's not more than $150-$200...for all I know, it could be under $100.
If rooting your phone voids the insurance, there's an easy solution. Take said phone, throw up against brick wall, and file insurance claim....sounds real logical.