Yeah, Apple doesn't cover accidental damage or 'act of God'. Just hardware failure....basically, if the phone fails.
Sometimes you can find third party companies that offer insurance for products such as computers and mobile devices...but you're gonna pay for it.
Really sucks that you dropped it, T. I've heard of some people's iPhones surviving some pretty amazing stuff, then I've heard of others taking one small drop the wrong way and breaking open or shattering the screen. I really think its just the luck of the draw on how physics wants to hit it.
I've dropped mine a couple times even though I swore I would never do it, but it's survived for the most part. I do, however, have a nice little scratch on the screen that popped up within the first couple weeks. The weird thing is, I've probably been LESS careful with it since that time, and have had no other issues since. Once again, probably just a case of wrong place, wrong time.

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