The iPhone 7 is water-resistant and that's a nice feature to have as it definitely gives you peace of mind. However, reading the footnotes on the iPhone 7 specs page reveals that phone's warranty doesn't cover liquid damage.
Here's the full text of the footnote.
iPhone 7 and iPhone 7 Plus are splash, water, and dust resistant and were tested under controlled laboratory conditions with a rating of IP67 under IEC standard 60529. Splash, water, and dust resistance are not permanent conditions and resistance might decrease as a result of normal wear. Do not attempt to charge a wet iPhone; refer to the user guide for cleaning and drying instructions. Liquid damage not covered under warranty.
The iPhone 7 boasts IP67 rating meaning it's dust-proof and water-resistant in a meter of water up to 30 minutes. Nevertheless, Apple says that the IP67 isn't a permanent feature and with time, it may no longer work as advertised.
Apple isn't the first company to deny covering liquid damage under warranty, as Sony denies warranty for phones that have been fully submerged into water. However, warranty does cover accidental damage from splashes or rain.
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