http://www.crunchgear.com/2011/01/3...o-repair-policy-involving-the-liquid-sensors/
A new repair memo indicated that Apple is making changes to the iPod water sensor policy. The new policy states that if the customer disputes whether the sensor has been set off, Apple may look for external corrosion damage. If there appears to be none, the warranty will still be valid. While this is only for iPods at the moment, theres no reason that iPhones and iPads cant be included.