what happends if your phone drops in water?

[instaBaBy]

nothing, pretty much. its simply screwed.

[Shelley B]

Take to the vet.

[Poli Rad]

it will probably fry, unless it is not on.
you might try removing the battery immediately and air drying the whole thing for 24 hours before reassembling and turning it on.
there is a small chip built in the phone which will register the contact with moisture (chemical reaction) so don't try to fool the provider when you turn it in for repair or replacement.