When you have apple care it is safe for everything,
Because maybe someone drops your phone its broken etc
Apple has to give you a new iphone 4s or HIGHER

and the gbs you had or HIGHER
if you had a 4s with 16gb you might get a 5 with 32 if you have luck and it gets broken or stolen
(Correct me if im wrong pls, cause this is what they told me when i bought ipad mini and apple care)