Dont you have to get AppleCare on the pencil as well for that to be covered?
No, apparently the ipad applecare covers it all:
Enjoy 2 years of peace of mind when you buy AppleCare+ for iPad.
AppleCare+ is an insurance product that provides up to two years of expert technical support1 and hardware coverage2 for iPad, Apple Pencil and Apple-branded iPad keyboard, including up to two incidents of accidental damage, each subject to an excess fee of £39 for iPad and £25 for Apple Pencil or Apple-branded iPad keyboard.3 Coverage begins on your AppleCare+ purchase date.
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AppleCare Products - iPad
Get iPad solutions from Apple support experts. Explore the most popular iPad topics, and find out more about iPadOS, iCloud and iPad apps.
www.apple.com