You will have to get insurance to cover it for it being lost or stolen. The warranty doesn't cover that, it also doesn't cover the screen being scratched or cracked after you have it, if it comes out of the box like that then yeah the warranty will cover it. Basically the warranty won't cover anything that happens to it that is your fault, ie because you have dropped it or something including water damage. The warranty will only cover if the phone isn't operating properly.