how does the handset protection work?

You may obtain handset protection when you purchase and activate a new phone on the Cricket network. Handset Protection costs $5 per month (plus applicable tax) for all models except the iPhone.  iPhone coverage is $10 per month (plus applicable tax) and is conveniently billed to your account. In the event of lost, stolen or warrenty covered damage the handset will be eligible for a replacement of same quality as the original.