does apple care fix water damage

Liquid damage to iPhone or iPod isn't covered by warranty - http://support.apple.com/HT204104

However, if you have AppleCare+:

Applecare+ for iPhone

https://www.apple.com/support/products/iphone.html

Get up to 2 incidents of accidental damage protection every 12 months

If you're uncertain if you have that check Your Service and Support Coverage by clicking here --> https://checkcoverage.apple.com/

Not under warranty. Water damage is not covered. Did you purchase AppleCare+ when you bought your phone? If you did, you can use that to get a greatly reduced price replacement. If you didn't buy AppleCare+, you'll be offered an Out of Warranty replacement and you can see the prices in this link --> iPhone Repair - Official Apple Support

As you can see, with AppleCare+ to replace iPhone 11 Pro is $99.

Without AppleCare+ it will cost $549