Yes they would. Insurance doesn't typically cover water damage. Here is the wording from the agreement for the black tie insurance for 2 years for 170.00: A. Geek Squad Black Tie Protection Repair Coverage (GSBTP). This Plan covers parts and labor costs to repair your product in the event your product fails to properly operate due to: Defect in materials or workmanship Normal wear and tear Dust, internal overheating, internal humidity/condensation A power surge/fluctuation Defective pixels for those products that have a pixel-based display. Pixel repair will be based upon three (3) defective pixels located in a group less than one half (1/2) square inch or five (5) defective pixels throughout the entire display area. If we determine in our sole discretion thatyour product cannot be repaired, we will replace it with a product of like kind and quality that is of comparable performance or reimburse you for replacement of the product with a voucher or gift card, at our discretion, equal to the current market value of the product, as determined by us, not to exceed the original purchase price of your product, including taxes. Technological advances may result in a replacement product with a lower selling price than the original product. Replacement parts or products may be new or rebuilt to meet the manufacturer's specifications of the original product at our discretion If your original product was delivered and/or installed by Best Buy or Geek Squad as stated on the same purchase receipt as the purchase of this Plan, and you receive a replacement product pursuant to these terms and conditions or it is necessary for us to remove your product from your home for it to be serviced, we will cover the delivery and installation costs for your replacement product or serviced product exclusive of parts such as mounting brackets, kits, etc., that may be needed to complete the installation. Your coverage under this Plan is effective beginning on the date you purchase your product or on the date your original product was delivered to you as stated on your purchase receipt and will expire either one (1), two (2), three (3), four (4), or five (5) years from this effective date depending on the length of Plan you purchased and as stated on your purchase receipt. Our obligations under this Plan will be fulfilled in their entirety if we replace your product or issue you a voucher or gift card for replacement of your product pursuant to these terms and conditions. Parts replaced under the terms and conditions of this Plan become the sole property of AIGWG/Best Buy/Magnolia except where prohibited by law. This Plan is inclusive of your product's manufacturer's warranty; it does not replace your product's manufacturer's warranty, but it does provide certain additional benefits as listed within this Plan during the term of the manufacturer's warranty. Parts and services covered under the manufacturer's warranty during the manufacturer's warranty period or are the subject of a manufacturer's recall are the responsibility of the manufacturer and are not covered under this Plan. After the manufacturer's warranty expires, this Plan continues to provide the benefits provided by the manufacturer's warranty (excluding manufacturer's loaner programs), as well as certain additional benefits as listed within these terms and conditions. Coverage under this Plan may be available on a limited basis outside of the United States, for details call 1-800-GEEKSQUAD. B. Geek Squad Black Tie Protection Product Specific Repair Coverage (GSBTP). The following coverages are provided to you under this Plan for the following products and are in addition to the coverages provided to you as stated within Section A, Coverage: Smartphones, Personal Digital Assistants and Subscription Based Mobile Phones: One (1) battery repair or replacement, when the original battery is defective as determined by us, in our sole discretion. You may be required to return your original defective battery to us to receive a replacement battery. Repair or replacement, in our sole discretion, of chargers or cradles that were included with your product at the time of purchase; these products may be mailed to you and are limited to one like item per Plan term. Appliances: In addition to the coverages for the products specifically listed in this subsection, this Plan also provides for the removal and installation of an appliance in the same location for services purposes provided that the appliance was delivered and/or installed by a Best Buy Authorized Servicer, Best Buy Authorized Installation Provider or a Geek Squad Installation Technician as stated on the same purchase receipt as the purchase of this Plan. It mentions internal condensation but not water damage. This seems to be cheaper than the 10.00 per month so there must be an add on option to cover water damage but I don't think so.