Losing your iPhone or getting it stolen is pretty common these days, but it's important to know that while AppleCare+ covers accidental damage, it doesn't cover a lost or stolen iPhone.
What Are AppleCare and AppleCare+?
If you're not quite sure what we're talking about, AppleCare+ is Apple's extended warranty service that you can purchase to augment its regular AppleCare warranty. Whether you know what it is or not, you've had AppleCare if you've ever bought a new Apple product. Whether it's an iPhone, iPod, Mac, or iPad, AppleCare comes free with every Apple product purchase.
AppleCare provides with a one-year limited warranty against defects (like if the home button stopped working), as well as 90 days of complimentary phone support.
With AppleCare+, you pay extra for more protection. The warranty coverage and support is extended by an additional year, and AppleCare+ lowers the cost of repairing accidental damage---like if you were ever to drop your phone and crack the screen.
There are limitations, though. AppleCare+ only covers up to two incidents of accidental damage. And worse than that, it doesn't cover theft or loss at all. If you lose your phone or get it stolen, you can't go crying to Apple.
What Services Will Cover Theft or Loss?
If AppleCare+ doesn't cover theft or loss, then what can you do if you want protection from these things? You're not completely out of luck.
Your phone carrier probably offers its own insurance, which usually covers things that AppleCare+ doesn't---like theft and loss. It also covers accidental damage, but as noted by our sister site ReviewGeek, the deductibles are usually higher than with AppleCare+.
However, that's your best option if you want that kind of coverage. Some insurance policies can help with theft, as well (but not accidental loss). Your home owner's or auto insurance policy should cover theft if your device is stolen from those locations. You can also get travel insurance that (among other things) covers you in the event of theft when you're on a trip.
There also are things you can do to at least prevent your phone getting stolen, like disguising it as a cheaper phone and making sure that you never leave it somewhere that could be an easy target for a thief.