Apple has recently amended its iPod liquid damage policy, according to Boy Genius Report. Now, AppleCare will inspect the iPod for “signs of water damage” before taking a look at the device’s Liquid Contact Indicators.

Liquid Contact Indicators (LCI) are housed within our beloved iDevices. When an LCI comes in contact with water, the LCI is “activated,” and the device’s warranty rapidly becomes void.

This means that if you accidentally drop your iPhone in the sink, or down the toilet, AppleCare really isn’t going to care. However, LCI can even become activated by raindrops or condensation, which is frustrating.

However, whereas previously AppleCare employees were instructed to check out a faulty iPod’s LCI, they now have to inspect the device “for other signs of water damage” first. And, even if the LCI are activated, the iPod’s warranty isn’t void unless other factors point towards water damage.

This is good news, as it means AppleCare employees won’t be so quick to dismiss a faulty device on the grounds of “water damage.” Currently, we’re not sure whether this new policy extends to other iOS devices, or if it only concerns Apple’s iPod line.

We’ll keep you posted.