Help. Dog ate my pencil

Err, no. The device warranty provides coverage for manufacturing defects or technical faults that occur within the warranty period. The warranty does not cover accidental damage - or the device being eaten by your dog.

However, if had the foresight to purchase an optional AppleCare+ plan for the iPad, then both the iPad and associated Apple Pencil would be covered by the plan for accidental damage occurring to either. An AppleCare+ plan can be started when the qualifying device is purchased, or within 60-days of the original purchase.

AppleCare - Apple

If you have an active AppleCare+ plan, the cost of repair or replacement is reduced to a small excess/deductible fee.

You should note that the damaged device must be available for assessment. If it's unrecognisable, or inside a dog, this may be difficult.

There is no warranty coverage for this.

I also can't imagine that eating one would be too good for the dog - so you may want to take your dog to your vet.