Makes me laugh reading all these comments!! The simple answer to all these complaints is to simply read the terms and conditions sent to you.
I have three polices with LSG, Lloyds and three cover and the service has always been excellent, the customer service is excellent. If you read your T&C's then you would know that the timescales are a bit long, you have a low excess and the replacement phone may be a refurb. All you do is buy a cheapy £5 phone as a spare, and if your handset is at the repair centre then you're not stuck, simple really.
As for the comments I have read about reporting to FOS, Lsg is FSA regulated, therefore cannot mislead you etc. You are annoyed and writing reviews because you haven't taken the time to actually read about what you're paying for and tbh thats your own problem.