First of all - I have to say that I was ill-prepared to fight for my insurance. After reading a great amount of negative feedback, I was expecting the worst outcome. So I decided to prepare in advance.
My Iphone 4 had water damage, but otherwise in perfect condition (I advise to invest in a good protective aluminium case), not a single scratch. Before sending it off, I took pictures and a video, to prove this in case I was sent someone else's broken Iphone. I also stated in the claim that apart from water damage, phone was in great condition, with no cosmetic damage. Also, make sure to photocopy any documents/proof sent to LSG - to backup anything you said.
Firstly, I was pleased to receive the claim form in 5 days, as promised on the phone. Still, I was expecting something bad to happen. All documents sent by me were 1st Class special delivery. Approval of my claim also arrived within 3 days and finally, my phone was posted on the 24th of August (which they would receive the next day). My iphone was sent back to me special delivery, which I received on the 9th of September. It works super quick, and I am glad to have my own phone back, not a 'replacement'.
Overall, I am actually really pleased with how my claim was dealt with and I am sorry for those who had bad experience with LSG.