Customers here in Europe are now able to purchase AppleCare+ which provides an additional two years of hardware warranty, including two incidents of accidental damage. There will be an excess fee of £55.
As with all insurance schemes it a case of calculating the cost/benefit compared with relying on the standard warranty. Recently I smashed the screen of my iPhone 5 and had to pay Apple £179 for a replacement phone (the only option when a screen has to be repaired). But this was the first time since I bought my first iPhone that I had needed major surgery.
AppleCare+ costs £79 so there is a good case for buying it for peace of mind. I am not sure whether or not I will add it to my new 5S purchase but I might well wait a few months before deciding. If you are clumsy by nature perhaps it is a good idea.