iPod 5th generation is it covered for water damage

it will not be fixed under the warranty since that only covers manufacturer's defects - and getting it wet doesn't count as a defect.

If you dry it out it may come back. Do not use it, do not turn it on or charge it. The damage from water isn't necessarily the water itself, it's the short circuits caused by the water. Put your iPod in a bowl of dry rice for at least a few days. (depends on how wet it got, splashed or good and soaked?)

Then you can try to charge it and see if it comes back. Might, might not. Reviving waterlogged devices is really hit or miss and sometimes even when they come back they come back damaged, even if it's something that shows up days or weeks later.

The one thing Apple can do for you is an out of warranty replacement. There is a fee for this but they will replace your device with a refurbished replacement.

Like any warranty, it does not cover damage.

You would have to pay for repair/replacement

If you have Apple Care +, for 2 incidents you pay much less for a replacement, otherwise see Skydiver post.

With AppleCare+ the exchange price is $29

Thanks, but the price is not worldwide though.

One thing is that AppleCare + is not in all countries and

Purchase AppleCare+ with your new iPod. Or buy it within 60 days of your iPod purchase:

• At an Apple Retail Store (inspection of iPod and proof of purchase are required)
• OR call (800) 275-2273 (requires you to run a remote diagnostic and provide proof of purchase)

See AppleCare+ Terms and Conditions for complete product details.

You can have AppleCare+ not only in U.S. e.g. Australia

Coverage for up to two incidents of accidental damage from handling your iPod, each subject to a A$45 service fee

As stated not the same price in countries where Apple Care+ is available.

So best OP make a call and find out.