Wow, ask a simple question...
But, yeah, Applecare is just for manufacturing defects/hardware failures.
For iPads, the two most common insurance plans I have seen are:
Squaretrade which covers accidental damage, but NOT theft
and
Worth Ave Group which covers accidental damage and theft (with a police report, I believe).
Read the coverage info closely, since I think they probably only cover up to the original value. So, say you drop it and need a screen replacement, they would cover that. (Say $100 just to pick a number.) Later on it is lost or stolen, I *think* they would only cover the remaining cost after the screen replacement. So only $399 for a $499 iPad.
It's still a whole lot better than nothing, and perfectly fine if you only lose it once, but be sure to read the terms.
Also, as others have said, homeowners/renters insurance can usually cover theft, but considering deductibles, it's not much help unless you have a lot of other stuff stolen or another claim later in the year for whatever else (since in the second case, the deductible could be used up depending on the amount).
So Applecare is great for defects and hardware failures, but doesn't do anything else. If you want accidental damage or theft protection, there are options out there even beyond the two linked above. I just have heard the most about those two.