Macbook Pro Water Damage - AppleCare+

I'm looking at getting a new Macbook Pro, and considering getting AppleCare+ if it covers accidental water damage. But the terms seem to not be 100% clear.

"AppleCare+ does not cover excessive physical damage, including catastrophic damage due to liquid contact or submersion"

Does that mean they don't cover any water damage, even if it's like spilled bottle of water? Or is that speaking of like if your house flooded and it got damage, then they wouldn't cover it?