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Even with screen protectors and stuff, that should work.
Try this
1) make a nand backup of your phone, in Recovery.
2) use the RUU to re-flash your phone to 100% stock.
3) *228 to activate because it will probably make you again
4) make a phone call and see if the problem exists.
If it exists, then take your phone to Verizon, and show them how it doesn't work.
It's okay if the phone takes a volume button push to come back ON. But it should be shutting OFF when you put your face up to it, on a phone call. If it's not doing this, take it to Verizon.
If the problem ISN'T there, then re-root your phone, get your Amon-RA recovery back on there, and restore your nand backup.
Then, I suggest, re-flashing xtrSense/xtrROM.
Those ROMs didn't touch ANYTHING in how the phone talks to those sensors, and has fully 100% stock functionality in that area. Should work.
A wipe/wipe, and reflash is the best, if the RUU worked.
Will Verizon help me, even though my phone is rooted? Does that void the insurance/warrantee? Should I un-root it before I bring it in, in the case that the proximity sensor doesn't work after I do what is instructed above? (I would do it now, but my husband is much smarter than me when it comes to this, so I'll just have him do it later so I don't screw anything up lol)

Just to play it safe I would unroot the phone before you take it in. If they want to keep the phone and give you a refurb, you can do it on the spot instead of I will be back later. Just a thought though.![]()
I just remembered my phone is "Water damaged" and by the quotations I mean the water never actually got in the phone, but there was a small amount of condensation on the inside of the back cover, just enough to turn the water damage sticker slightly red. Which likely means the warrantee/insurance is voided anyway. Bummer.