Funny you should mention the water issue. My 16 month old recently took advantage of a lap in my sisters judgement to poor water on the couch by her MBP. She dried it out and initially it worked but she's had no Wifi as well as a speaker dying. Now it doesn't even seem to work period. Given the lack of coverage for water damage and that Apple products seem so well built I might pass on the coverage and risk it.
Thanks again for the replies.
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