| I'm almost 100% it doesn't cover damage caused by you. It extends your warranty and tech support. It covered my iPod when the battery went awry, but when my friend dropped his iPhone they wouldn't replace it.
It's good to have, but I noticed it's one of those things that if you don't get it, you need it and if you do get it, you never seem to use it.
I've read posts from people saying they put their Apple products under their homeowners insurance in case of damage or theft. |