Yeah, who knows? I am only brainstorming. Ever since I discovered the abysmal state of Apple's customer service after having my iphone stolen last year, I feel confident we will never know.
The only way to submit a claim was to click on a button in my icloud account that did not exist. I live in a big city and visited 3 Apple stores and spent about 15 hours in them in total, but none of them were able to help me get the claim filed so I had to give up. One of the supervisors did refund the ~$15/mo that I had paid for the AppleCare+ insurance, but I had to buy a new phone.
It's pretty easy to see why they wouldn't include theft + loss coverage unless you pay for it...