Iphone 6 won't turn on or reset. Took it to Apple Store who say it's water damaged around the camera. Not much use having a phone you can't use in the rain or if you have long hair and it's wet. Apple want £229 to replace it even though it's insured.

Sorry, but water damage is not covered by the warranty given by Apple. If the liquid indicators are triggered, the only option you have is the Out-of Warranty-Service fee, which is a reduced price for a new device. This article has more details about that:

Service Answer Center - iPhone

There are providers that offer insurances that also cover water damage, but the Apple warranty does not. If your provider included an insurance that included water damage, you'll have to contact them about it.