1 question since I am buying a new Lumia 1020. If this happens is it covered with warranty?
Hi there, I had this issue, it's since been fixed.
Yes, it will be covered - presuming you didn't cause any obvious physical damage (i.e. drops, bashes) that would have caused it or exposed the phone to liquid damage. I had mine repaired under warranty, and they simply swapped the camera unit out, very quick and easy for the technicians to do. It seems I was quite lucky compared to some others on this thread.
I wouldn't worry too much about getting this - it's a very rare issue, millions of 1020's have been produced and only a very tiny amount have ever got this. Of course, the reason it can be easily read about online is because those with the issue are - understandably - going to be more vocal about it.