Does 2 year Apple care protection cover water damage?
AppleCare (the free, manufacturer's warranty) does not. But if you purchased the AppleCare+ ($99), yes. AC+ extends the manufacturer's warranty AND covers accidental damage for a period of 2 years from date of original purchase.
So if my iphone 6 drops in the toilet or my screen cracks and I have the 2 year Apple care protection and i am in canada they would fix it or exchange it for me