No, physical damage is not covered. Your home owner's policy might cover it, or perhaps a separate equipment insurance policy if you have one, but even those are doubtful when it comes to obvious owner-caused damage.
Indeed. You can TRY to contact a local Rogers store or customer service to see if they'll replace it for you. Don't expect a BNIB 9700 from them IF they're willing to replace it.
This is something I PRAY RIM can remedy for their premium devices; most users of iPhones who go into the store and are honest usually get a replacement that is immaculate. I know they'll just send it back to assembly for repair, rebox it and back to store for another replacement. Still it gives a nice impression to the end users; not some horrible replacement that looks like dirty hands have had their way with it and left it electronically distraught or scarred. My old 8100 I replaced at Rogers store got me one with horrible off-white backlit keyboard, and dim lighting. All for a trackball replacement.
Bon Chance though.
Senior help desk administrator (rim_db_admin_sr_helpdesk) Serious Mobile
My office neighbour dropped his 83XX in the pool 2 years ago and Rogers replaced it with no questions. He is a long time (15+ years) customer with all his family using Rogers so that may have played a role.