does apple care cover water damage?

I just got a new ipad because the one I had was exposed to water and basically, killed it. When I went to the apple store today, I told the apple employee that I didn't have apple care on the ipad before but even if I did it wouldn't cover water damage. The employee said that no it would and in some cases, they would even replace it with a brand new ipad. I have looked this up and everywhere I search, it says it's not covered under apple care but I'm still wondering. Can someone confirm whether or not it's covered, in my case, it's an ipad but I don't think it should matter what device.