I dropped my phone in water a couple weeks back. Pulled it out quick. Seemed ok except the keys on the keypad weren't all responding.
everything else like camera, bt was just fine. Well sealed i believe. It's an N73.
after a day or two all the keys were fine but the 8 key stopped working. I then took my phone to vodacare with the "i've got insurance" line and also said i'd dropped it in water. They gave me the water damage excuse, to which i candidly replied, "so what's the point in having insurance?"
sorry to say this and i hope i'm wrong, but i think we are getting bad service in general.
you don't ever seem to get the feeling that you're welcome or being listened to.
anyway, the 8 key on my phone is ok again but now the battery life seems shorter. Otherwise it's all good. One way of getting rid of that dirt you're always trying to remove

don't try this at home folks. I was lucky i think, although the n73 seems to be moulded shut.
this is my first "water damagei" experience, and it really was, so i accepted their excuse.
i do however want to offer something to the community. Perhaps it will shed some light on this excuse.
i've noticed at times that after some time in my jeans pocket my phone has some condensation on the screen. This tells me that there's some moisture, which you would say is normal.
Here's the catch tho... Is it perhaps possible that the service centres detect moisture in your phone that resulted from this kind of exposure, eg being kept in your pocket, and then they call it water damage?
this is of course just a theory, but could be a conspiracy theory nonetheless
think about it. The less you have to pay out insurance claims, the more money you make.
i don't know all the specifics, but maybe others could share their experiences?
I think i may be onto something here

stop me if u think i'm crazy