Refusal to refund for ****** cellphone at their sh

Last year I took a cellphone for repairs at their store as am one of their valued contracted clients. Earlier this year their store was broken into and apparently my cell was ****** with some of the merchandise in their shop. It is been 4 months now and they deduct their monthly subscription but they blatantly refuse to replace the cell ****** in their possession. Their claim is that they don't have insurance for third party but I do wonder if they can't offer the service why can't they allow us to terminate the contract instead of robbing us our hard earned cash.