I have an iphone 5 which was water damaged on Sat. Is there a way to replace without having to pay the outrageous costs of a new phone? When I got it, I got a deal for the 2 yr contract and a phone at $99. Really don't want to pay full price now when that one isn't even a year old. No warranties for anything you buy now days unless you pay an extra hundreds of dollars for it.
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Warranties cover manufacturing defects, not consumer damage. Your car's warranty does not apply when you have an accident. That's what you pay INSURANCE for - for your car or your phone. Replacement if damaged (lost, stolen or damaged) and a deductible. No insurance, then finding an affordable replacement is up to you.