Yeap, I learned the same lesson when my teenage son's "dumb" phone was stolen out of his school backpack. Even though it was much cheaper than a smartphone it was still a frustrating lesson learned.

Now that the family has four Android smart phones (and I'm a poor man) we've made sure that all four are insured through Verizon ($100 per replacement up to 2x per year for each phone) and that they all have an app called Lookout installed on them - a find-it, scream, wipe-it Android app.

Last week my daughter went to a roller coaster park with friends. They put all their wallets and cell phones in one backpack and then whoever was carrying it promptly left it somewhere. I get a call from an unknown phone number that was my daughter in tears saying that they lost it all. I quickly used the find-it app to find it and used Google Maps Earth view to tell them where it was. It turns out an employee had picked it up and brought it to lost & found ... that's where it was and they got it all back.