What is covered under AppleCare+ insurance?

I purchased AppleCare+ with my iPhone 4S and in the contract it says ''AppleCare+ extends service coverage to 24 months from the purchase date of your original iPhone, each subject to a 49$ handling fee.''  My question is what is actually covered by ''accidental damage'' scratches, water, dropping ect... Also does Apple send you a refurbished phone or a new replacement if you use the policy thanks.

Free Marc Emery wrote:
...what is actually covered by ''accidental damage'' scratches, water, dropping ect...
Yes.
...does Apple send you a refurbished phone or a new replacement if you use the policy thanks.
Replacements will be refurbished units.

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