Best Buy Ipod Touch Insurance?

I bought my ipod touch 4th gen. 32GB from best buy. when i was checking out they asked me if i wanted to insure it was only 40 buck for a year and they said it cover every thing but Theft so i got it, i just spilled some water on it and i cant turn it on, and i still have the recite, so if i go into best buy would they just give me a brand new ipod or would the ship it away and fix it? And where do i go when i walk into the store? (I have only had my Ipod seven months)