I carry mine in the seatbag. No issues so far. I carried it MTB'ng in my Camelback once and forgot to close the zipper all the way........can you say DUST?? LOL but the phone was still fine. It doesn't rain much here so I haven't had to address that issue yet - but if you turn the phone off Before it gets wet, and make sure it's dry before you turn it back on, you won't fry the circuits.

Also regarding the insurance: most phone companies, if you have to you can add the insurance, wait 30 days, make your first $5 payment, replace the phone and then cancel the insurance. (the phone companies won't tell you that tho)