Well my new phone arrives tomorrow. So after reading these post, Talking to Friends and family, and speaking to verizon about how this will all go down I have decided the risk is as follows.
1)Send in phone, verizon sees no problem and I get a new phone at zero dollars (awesome)
2)send in phone, verizon detects water damage some way that I dont know about, charges me 600+(hold crap)
3)call insurance and claim water damage, Pay deductable of 99 bucks and get a new phone.
Odds are verizon would not be able to tell. Based on my inspection and higher then average knowledge of electronics and circuitry I think it would fly, but based on the small deductable and knowing there is no chance for me to be screwed i think i'll just file the insurance claim and be done with it. Im to old to be sitting around worrying about this kinda stuff and pulling scams. big red is one big rip off so i would not feel bad in the least but its just not worth the hassle IMO. thanks to all for your comments.