AppleCare+ Scam / Dishonest Service

My iPhone was stolen unlocked out of my hand on the street. I was subsequently totally locked out of my iCloud - after hours of back and forth with Apple Support I managed to get back in and the Support Team person I am speaking with admits to me that if a thief steals your phone unlocked they have the imitate ability to change your password which explained how I got locked out.

I then contact AppleCare+ to make my claim. I have a police crime report number too. I am told that because FindMyiPhone was off at the time of my claim that they were not liable to replace my phone. I file an appeal because I know categorically it was on. I also know categorically that the thieves turned it off because my friends were able to track my phone after the theft, for a short period of time until my device vanished from FindMyiPhone.

The woman who filed my appeal said that she was confident about my claim… I then get a response a few days later saying no, sorry, FindMyiPhone was off. You are not entitled to coverage - please do not reply to this email.

How on earth can this constitute as theft coverage?! If it is really so simple as for the thieves to turn off FindMyiPhone for you to loose all rights to coverage - that to me is completely dishonest and deceitful of Apple Care.