Here is another comment from a user where Apple claims the phone has been in contact with water:

I purchased an iphone, while it worked it is great, I sent it for repairs, they said it was water damaged, the phone has never been near the water, I purchased the extended warranty, it is not covered, my husband was polite and nice, and wasted over three hours on the phone. so the lesson? DO NOT BUY APPLE, and NEVER BUY THEIR WARRANTIES they cover nothing!!! I will never buy another apple item in my life