My DD got drool all over my cell phone, and it did not work right after that. I bought the replacement plan for $5 and had to wait 30 days for the service to be effective, as was the policy. But I got my phone replaced without paying anything extra and they did not hassle me as to why or how the phone got damaged. They said water damage cannot be fixed, and although your phone might seem like it works well for a few days after, it'll eventually stop functioning correctly.
I know some who have cheated to get a phone replaced and stuck their phone in the microwave for 5 seconds... I mean i know no one is made of money and it can be costly to replace a phone, but i could not do something dishonest like that. Just my humble opinion!