Apple will not repair, for any price, an iPhone that is dead as a result of contact with the water, and they hide little strips of paper inside it that will indicate if it has had contact with water. It is not under warranty for this. They do not offer insurance, but if they did - it wouldn't cover water damage. My only option, according to Apple, is to give them $600 for another, brand new phone without any contract. They did tell me that AT&T stores have refurbs, however.
This, like many other things Apple said, (including, "oh, you don't need insurance, it's under warranty!")was a lie. I waited in line at both stores to be told that under no circumstances could they do anything other than take $600 from me. AT&T's website says that it has refurbs, but when I try and buy them, as soon as I give my zip code it disappears from the website.
4/5 of the planet is covered in water. What's more, water is a necessity for human life, and it is therefore absolutely the case that every human on earth is going to interact with water every day, several times a day. We drink it, bathe in it, wash our homes and belongings with it.
I am vexed. Very, very vexed.