The extended warranty covers accidental damage. It does not cover lost or stolen phones as there is no way for them to verify that the phone is legitimately lost as opposed to someone trying to scam a free phone. The old phone would need to be returned in order to receive a replacement.
You are able to suspend your service once you have been with koodo at least 90 days. The cost of the seasonal hold is $15/month, plus any tab charge for that line.