Ignoring the Facts

I used Asurion to insure my Blackberry Pearl. I began to experience technical diffuculty with my phone, so I removed my SIM card so that I could use my old phone, and then my wallet, Blackberry, and a few other items were stolen from me.

I called Asurion as soon as I could and explained to them the situation, repeatedly saying there was techinical difficulty prior to the loss. I was transparent from the beginning regarding the whole ordeal, with Asurion, T-Mobile AND the Police. Then, my claim was cancelled because they couldn't verify the phone was stolen (despite the POLICE report and repeated statements that it was in fact stolen). I have since learned that the only way to verify would be to pay $250 to T-Mobile to cancel service and THEN call Asurion, which would then replace my phone but require me to sign a new contract with T-Mobile? Isn't that kind of a scam?