Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_2 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A400 Safari/6531.22.7)
The BBC ran a story (
here) about the water sensors falsely indicating water damage. The BBC reported:
Apple told Watchdog the following:
"If an iPhone has been damaged by liquid, the service or replacement is not covered by the Apple one year limited warranty or an AppleCare Protection Plan (APP). It would be eligible for Out Of Warranty Service. Currently, if a customer takes their iPhone to an Apple Retail Store, the warranty will only be void due to liquid damage if
all indicators have been triggered." [emphasis added]
So it seems the OP didn't dodge a bullet or get lucky.
EDIT: Added BBC link