Is this covered under AppleCare?

Imagine the conversations at Apple Genius Bar.

Genius: How may I help you?
Customer: My iPhone headset is broken.
Genius: When did you buy the phone? Do you have AppleCare for it?
Customer: Oh yes I do have AppleCare.
Genius: Let me see the headset.
Customer: Here it is, as you can see…….
Genius: Well, to be honest AppleCare does not cover this kind of damage.
Customer: Well, I found out the headset is not chew-proof. I have a puppy.
Genius: Well, I’ll replace it anyway. Just don’t give it to your puppy.
Customer: Oh, thanks. Thanks a lot.
Genius: Glad I can help. Here you go. Have a good day.