I went to the AT&T store to use a gift card, and I was told that starting today AppleCare will cover liquid damage. I looked and can't find anything online about this change, so I thought I would ask if AT&T was blowing smoke.
Highly doubt that.
If you heard it from an AT&T rep then I bet he was talking out his rear end.
If that was a case everyone would drop their iphones in the toilet and bring it back to Apple for a replacement.