AppleCare+ will cover water damage to your iPhone, but of course with a service fee depending on what model you have. Anecdotally, I upgrade every other year and I have been hanging/propping up my iPhones (Since the 7 Plus) in the bathroom or shower to listen to podcasts, wiping the condensation off after and going about my day almost daily and never had an issue with mine. I've dropped a couple of phones completely into water, pulled them out and dried them without issue. And lastly, it was my last iPhone (13 Pro) I intentionally took underwater to take pictures and video in the ocean, rinsed with fresh water immediately after, dried and no problems for another year after. Maybe I just got super lucky on the sealing job of the phones I've been getting, but none of them have cause me a visit to the Apple Store yet for water damage thankfully.
Something people don't necessarily realize is the difference between a warranty and Apple Care. The warranty nominally covers material defects in workmanship while Apple Care is actually more of an insurance plan that covers actual damage.
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