Wow that sucks that Asurion still considers the 1020 on AT&T a Tier 3 device and would charge $199 for a replacement. I've had my 920 for 13 months now and it's still a Tier 2 device so a replacement would be $125, but my phone was initially free so I doubt I'd pay that deductible at this point. Probably just buy a $50 Lumia 520 to get me by for a while if I had to replace my 920.
Also, in case you did not know, AT&T and Asurion now have this new Declining Deductible discount. Depending on how long you have had your device, the deductible drops over time. This goes into effect Aug 1, 2014.
More on this here:
"Effective 8/1/14, you may be eligible for the Declining Deductible discount and up to 50% off of the standard deductible..."
AT&T Smart Controls: AT&T Mobile Insurance