But what if you could get a warranty on a jailbroken device from someone who isn’t Apple?

Turns out you can. SquareTrade, the third-party warranty provider, is a company that has no problem replacing or fixing an iPhone, iPad, or really any smartphone whose software has been modified. The company’s new warranty policy, which starts at $60 for an iPhone, will fix or replace a device regardless of what’s been done to the software.

The technical expertise necessary to jailbreak an iPhone is itself a natural limiter of how many devices are jailbroken. But the warranty threat was another big deterrent. SquareTrade’s new offer does change the risk factor involved.

Apple’s attitude toward jailbreaking is laid out in a Knowledge Base article posted to its site:

Apple strongly cautions against installing any software that hacks the iOS. It is also important to note that unauthorized modification of the iOS is a violation of the iPhone end-user license agreement and because of this, Apple may deny service for an iPhone, iPad, or iPod touch that has installed any unauthorized software.

From Apple’s perspective, the reasoning is related to the company’s goal of ensuring a uniform user experience. The entire philosophy behind the App Store — besides Apple getting a cut of every paid app that goes on a device and generally controlling all aspects of the device — is that Apple employees vet the apps for buggy code and security problems. Loading software onto an iOS device that hasn’t been vetted in theory could create a user experience with which Apple doesn’t want to be associated.

SquareTrade’s VP of Strategy Vince Tseng told me it makes no difference to SquareTrade what users do with the software.  “We are here to help the Apple community, and if they want something Apple doesn’t provide we are here for them,” he said.

The warranty policy covers any software modification, but hardware mods are off limits. “Our general philosophy is that if a device hasn’t been played around with on the inside we don’t have a problem with that,” said Tseng.

Included in the company’s definition of hardware modifications? Filed-off serial numbers, meaning that SquareTrade is (wisely) shying away from offering warranties for potentially stolen devices.

Tseng acknowledges this policy isn’t targeting a huge group — jailbreakers aren’t a very large segment of the Apple community, he says —  but those that do modify their iOS software are an important demographic when it comes to the future of the platform, believes.

“Is it the majority of iPhone owners? It’s not. But they are the community that is out there expanding the possibility of what the iPhone can do,” said Tseng. “Apple has already had a touchy relationship with those kinds of people. Unofficially, they get some benefit out of it, but at an official level they want nothing to do with people modifying their devices.”

Apple did not immediately respond to a request for comment.

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Being the resident “extreme” iPhone case enthusiast (and also the klutz who drops his phone most often), I was intrigued by the new cellhelmet Kickstarter project. This $44.99 case combines svelte design with protection against drops, but bundles it with an actual insurance policy that replaces your iPhone if damaged while in the case.

The case in and of itself isn’t magical, and according to David Artuso of cellhelmet creator cellpig.com, the case isn’t “superman.” The design has angled edges to protect against drops, and a choice of six different colored backplate shields to protect the glass, providing great protection without the bloat of other solutions.

What sets the cellhelmet apart is the bundled insurance policy, administered by Global Warranty Group. Should the iPhone break while in the case, a $50 handling fee covers any repairs required, or complete replacement if necessary. I’ve written about iPhone insurance before,  this case including the insurance for the $44.99 purchase price is what makes it interesting.

The plan does not cover water damage, nor does the case protect the water sensors, but according to gadget insurance provider SquareTrade, glass breakage accounts for 82 percent of its claims. The cellhelmet is competitive with SquareTrade’s own insurance program, but is slightly less expensive, applies even to used iPhones, and of course, comes with a case. Your iPhone has to be in the cellhelmet for its policy to apply, however.

Coverage lasts for one year from the time you purchase your cellhelmet, and should you ever have to claim a total device replacement, you’ll have to buy another cellhelmet, but that’s consistent with other third-party insurance programs. If all your device requires is a screen replacement after an accident, you get unlimited repairs.

For slightly more money than a stylish iPhone case, and slightly less than a third-party insurance program, you can get both by backing the Pittsburgh-based company’s project on Kickstarter. Not a bad deal, especially if you can’t seem to keep a firm grip on Apple’s beautiful but somewhat slippery smartphone designs.

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The study dealt with failure rates for a sample pool of over 15,000 new phones covered by SquareTrade warranties, which are after-market additional coverage packages. By the numbers, the iPhone had a 5.6 percent rate of malfunction, compared to BlackBerry’s 11.9 percent and the Palm Treo at 16.2 percent. Problems which counted as malfunctions according to the study included lockups and freezing, battery issues, Bluetooth/camera problems, antenna/case defects, screen/input method failures, call quality and power issues.

SquareTrade also projects failure rates up to the two-year mark. The two-year numbers are projections and not measured data because the iPhone had only been available for 15 months at the time the study was conducted. Projected totals see the gap between the iPhone and BlackBerry handsets decrease somewhat, but Apple’s device still comes away with the best score at 11.3 percent. BlackBerry is predicted at 14.3 percent and Palm comes in last at a fairly high 21.0 percent.

The iPhone’s second year numbers are much higher than both the BlackBerry and Palm devices, and this is where the study becomes questionable. SquareTrade is, after all, in the business of selling warranties for handsets, and it is in their best interest to predict a sharp increase in failures during the second year of ownership of a device which many people are just about to begin their second year of owning.

That said, the study’s findings that are based on firm, measurable data are interesting. The iPhone bosts a significant advantage in call quality, for instance, which is somewhat contrary to the persistent complaints of dropped calls over 3G.

Another area where the iPhone wins big is in battery problems, where both the BlackBerry and the Palm have more than double the number of complaints. Despite burning through a charge so quickly, Apple’s battery is apparently consistent and dependable.

All three companies posted high numbers in touchpad/screen/keypad problems, although Apple still came out lowest of all. Of problems reported, the vast majority of the iPhone’s were related to the touchscreen, which does not bode well for the durability of the relatively new interface tech over the life of the device.

The full study is available here (PDF) from SquareTrade.

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