AT&T has finally announced that it will be offering its standard Mobile Insurance program for the iPhone starting July 17th. All iPhone models will have the option of a $4.99/month fee that protects against theft, loss, physical injury, liquid damage and mechanical or electrical malfunction.

The main catch is that existing customers won’t be able to update their current iPhone model with AT&T’s new policy. The carrier’s update only applies to new customers or upgrades within the last 30 days.

“*Please Note: AT&T Mobile Insurance Update: Effective July 17, 2011, the Apple iPhone (all models) will be eligible for coverage with the AT&T Mobile Insurance program (formerly Wireless Phone Insurance). Enrollment restrictions apply. Customers can only enroll within 30 days of a new activation or upgrade, prior activations or upgrades outside of 30 days are not eligible.”

There will be a $50-$125 deductible for each claim, depending on the iPhone model. Originally, AT&T didn’t offer any type of insurance for the iPhone. Since 2010, AT&T has offered a more expensive plan of $11.99/month with a $199 deductible.

AT&T covering theft and loss is a huge win for iPhone users. When the iPhone 5 comes out, many customers will probably buy this standard insurance plan.

What about you? Are you glad AT&T is finally including the iPhone in its Mobile Insurance program? Will you be buying insurance with your next iPhone?