how do I get a new iphone from applecare?

Charlie

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I have applecare for my iphone 3g. my hold button on the top right of the phone does not resound to well when I lock and unlock my phone. So I took it into my local apple store to get it checked out. It turns out they can tell I dropped my iphone on that area and applecare does not cover that. The button is really pissing me off now since Its hard to lock my phone before I put it in my pocket.

Is there anyway around this? I see people go in there all the time and get free replacements. Can I give my phone a dead pixel or something thats hardware related? The guy at the store even told me if I can find something else wrong with it I could replace it.
 
Do they cover water damaged phones?
If so, just "accidentally" drop it in the toilet.
Or make up something else like,
you got caught in very heavy rain and was talking on it at the same time.
 
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