No they don't. Even waterproof phones damage due to simple water spill get denied warranty (even from Apple).
https://www.apple.com/applecare/
AppleCare specifically covers water damage of any kind, and is what I would assume OP would be referring to as a "premium warranty and repair service".
alt Hacker News
https://www.apple.com/applecare/
AppleCare specifically covers water damage of any kind, and is what I would assume OP would be referring to as a "premium warranty and repair service".