Three things here, everything to do with mobile phones seems to be a rip off.
I cant agree with the shark thingy about the networks they are just as bad - search any one by name on here or elsewhere - and there aren't enough of them to make real competition. If you can bear not to have the latest model of handset there are loads of bargains on ebay of phones with all the features but a year old or so. If it only cost a half days pay and if it packs up it doesn't hurt so much. My family have stopped going for the newest phones now, we get a decent sim deal and stick it in a secondhand phone bought from a fashion victim who has to have the latest.
A second thing is to get a phone that is less prone to water damage. A friend of mine who teaches electronic engineering and small equipment repair reckons that most of the so called water damage is condensation. The rate of appearance of the problem goes up during cold and especially dry cold spells. People let their phone get very cold then put it in an inside pocket where the air is warm and loaded with moisture. He noticed this especially with people who had been skiing or climbing because they been getting hot and sweaty, talking on the phone then put it inside their jacket.
A plug for LG here, I have an F2400 that has fallen in each of the bath and a watering can, both times I fished it out, wiped it down and put it in the airstream from a hairdryer. It is still working. Same with my Jabra bluetooth earpiece, the old one the BT200, mine has been through the wash and still works!
Third thing is that sometines household insurance covers damage to mobile phones, mine does though for the reasons above I've never bothered claiming. The best of luck with yours, I hope things get sorted out.