I recently had to send my iPhone SE to Apple for an Apple Care+ repair, and your post reminds me of my situation.
Prior to sending it in, the support representative ask me a series of questions about the issues and condition of my iPhone.
One was about if the SE was damaged due to being exposed to water.
I asked if the rep could clarify the question, because my phone has been exposed to water many times, like if I had to use it during rain, or if my hands were wet. A few times during very heavy rain with high winds, my pants where completely soaked in water, and my iPhone was in my pants pocket, so I wasn't sure how to answer the question.
The rep did not clarify what she meant by being exposed to water. Other than asking if the iPhone had been water damaged.
I told her that I don't believe so, but I cannot know for sure do to the SE having some contact with water.
She then warned me that Apple would not honor my repair claim if the iPhone had water damage, and air would be charged the full amount of the iPhone to replace the damaged one.
This was confusing to me, as I thought the Apple Care+ covered two water damaged incidents.
When asked about it, she at first said that water damage was not covered, then later said it was, but not if I said the iPhone did not have water damage.
I asked her how could I know if there is water damage without opening the phone and looking, and told her that air think she may have told me incorrect information.
She seemed to get flustered, then asked me to hold for her supervisor to clarify the water damage policy. While holding, I looked up on the internet to make sure the Apple Care+ for iPhones covered water damage.
Of course it does, but there was a link showing how to check the water exposure indicator on the iPhones. My SE was completely white.
I was a little surprised that it showed no red at all considering the water exposure incidents I mentioned early.
I would assume that the newer iPhones would have much better resistance to water damage than my SE, and there would have to be serious water exposure, like being submerged in water for those indicators to show red.
Back to the story, the supervisor came on, and he apologized for the first rep for being an idiot, and essentially agreed with me.