Basically.
I pay monthly for phone insurance. It covers costs and lost/stolen of the iPhone.
If I make a police report saying I've my phone has been stolen. You will file a report, then you can use your insurance to get a new phone.
But it depends on WHAT type of insurance you have, obviously the stolen/lost one is going to be way more expensive and in the end you PAY more each month if you use your insurance.
It's not bullshit lol, I've had to do it b4 with my insurance.
Over-all though, you should try to return the phone.