The Sprint insurance covers water damage. I don't know what started the rumors that it does not.
The Sprint TEP program consists of the Service and Repair Program (like an extended warranty; no charge per replacement) and the Equipment Replacement Program (insurance that covers loss, theft, physical damage such as dropping or water damage; $50 per replacement).
Quote:
Equipment Replacement Program: Insurance coverage for lost, stolen or physically damaged devices.
$50 non-refundable deductible applies per approved replacement.
For full terms and conditions, see the Coverage Certificate.
Equipment Service and Repair Program: Provides coverage for mechanical or electrical failure, routine maintenance or failure from normal wear and tear.
No additional out-of-pocket charges to repair or replace your malfunctioning device.
Over 1,800 Sprint Phone Repair Centers available to repair or replace your device. Visit www.sprintstorelocator.com for the nearest location.
For full terms and conditions, see the Service Contract.
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Link to insurance program info on Sprint website:
Protect your Sprint or Nextel phone or smart device against loss, theft, liquid or physical damage.