Does Apple Care cover your iPhone if it's lost?

I have an iPhone 4 with verizon. I also the have the insurance from verizon. I got my phone the 2nd of February and i just want to know if i lost it would they cover that?

I know from personal experience that verizon covers lost/stolen iphones. There's a 170-200$ fee to replace it, even with the coverage though. I seriously doubt the apple coverage would cover anything other than manufacturing problems.