Phone is at bottom of ocean - covered by AppleCare+ Loss?

Find My just has to be enabled and active/functioning at time of loss. What a normal insurance policy would classify this loss as would be >mysterious disappearance<. Apple has no mysterious disappearance clause or exclusion in their policy that I can find. However, the ultimate arbiter will be Apple and the claims adjuster.

See this for a bunch of small print and details:

https://www.apple.com/legal/sales-support/applecare/applecareplus/2309/230912_applecareplus_us_tl_disclosures_ny.pdf

I don't speak officially for Apple - none of us here do - but I don't see why that would not be covered. I can't find anything in their official terms:

Legal - AppleCare+ Theft and Loss - Apple

that defines "loss", so I don't know why they'd consider that other than "lost" and cover it. But Apple sometimes has policies that they don't always make public or at least obvious, so I can't be certain. It might be wise to have loss insurance through another provider as a backup, just in case Apple were to balk.

Perhaps someone else here will have personal experience with such a loss and can offer their take on the subject.

Regards.

Theft and loss coverage is through an insurance company.

You would file a claim through the insurance company.

What is or isn’t covered is up to them.

From Apple’s site:

AppleCare Products - iPhone - Apple

1. Theft and loss coverage requires you to have Find My enabled on your device at the time it is lost or stolen. Find My should remain enabled and your iPhone should remain associated with your Apple ID throughout the theft or loss claim process. During the theft or loss claims process, you will be asked to erase your missing device, disable it, and transfer ownership before you can be issued a new device.
2. 
   
3. To ensure that you can sign in and access Find My, it’s important to remember your Apple ID and password and keep your account information up to date. If you use two-factor authentication for Apple ID, it’s recommended that you add an additional trusted phone number to your account so that you can receive the six-digit verification code required to sign in even if your iPhone is missing.
4. 
   
5. After initiating your theft or loss claim with Apple, you will be asked to finalize your claim on AIG’s website at www.aigtheftandloss.com.

Find My for any Apple product is actually recorded in Apple’s support database for the device, so even if it isn’t working Apple will know that it was enabled.

In the US, AIG

The additional loss and theft coverage is you purchasing an insurance policy.

Apple sells the insurance policy under the name of AppleCare+ Theft and Loss, but claims are handled by an insurance company.....(AIG).