This is probably one of the best arguments for having a removable battery. About a year ago, I spilled a giant cup of coffee all over my laptop and HTC Wizard - they were syncing at the time. I immediately yanked out both batteries, and took them to the kitchen sink and turned the sprayer on both - liberally (all the while muttering some interesting profanities). I took them outside, opened everything up as much as possible and let the sun do it's work. It was July, so it was nice and warm. About 6 hrs later, I put the battery back into the Wizard, not expecting anything good to happen, and it cranked right up. Encouraged, I did the same thing with the laptop - bingo!
I fully believe that the ability to quickly get the batteries out saved both devices. Hopefully, the iPhone is equipped with some sort of water sensing shut off mechanism. Good luck! Get the next one on your home owner's insurance policy!
re. tharmsen...
Just need to reduce your deductible. It usually doesn't make a huge difference in your premium to drop from $1000 to $500, and the drop to $250 is even smaller (with most policies). The key here is to get replacement cost coverage. I carry a $25,000 photographic equipment policy and the replacement rider is only about $50 a year. Makes a HUGE difference when you need to replace something expensive like a $3000 lens!