SquareTrade Warranties SquareTrade invalidates warranty due to "water damage" Internet

I recently filed a claim with SquareTrade on a 13" Macbook Pro due to problems with the trackpad.  The trackpad seems to intermittently not respond, making it very difficult to use.  This has been going on for several months now, but sometimes it works better than others.  It recently has been a constant problem and is very insensitive to touch.
  
SquareTrades' service center received the laptop a week ago, but there was no change in status, so I called SquareTrade today only to have them tell me it was not covered due to "water damage".  The computer has never had a direct spill, and has never been directly exposed to water.  They asked if it had ever been taken into the bathroom where it might have been exposed to steam.  I suppose it's possible, but none of this is related to the problem.  How much steam from a shower can possibly get into a laptop?  Steam, really?  Maybe if someone brought it into the shower, but come on!  

It is a faulty trackpad, but apparently if the tech company opens it up and sees any kind of "water damage" they don't honor the warranty.  This is such a convenient excuse, I have had other electronic items that have been splashed or gotten few drops of water on them, with no issues whatsoever.  Obviously if someone dumps a glass of water on a laptop keyboard, they are going to have major problems, and deservedly so.  I would not expect that kind of damage to be covered.

This is not the case with this laptop, and the computer works perfect other than the trackpad which is a common source of problems on the Macbooks.  I feel ripped off on the warranty and I'm told my only recourse is to have them send the laptop back and then take it to an Apple store for a second opinion.  Well I don't have time for that, not to mention, I paid SquareTrade for a warranty, but they won't even look at if they see a dried water drop.  

I need the laptop now, as they have already had it a week without any contact.  I'm left with the option of calling the repair company SquareTrade has contracted and getting an estimate, plus paying for the repair.  

I'm very disappointed, especially since I've had several warranties with them over the years, and have had success with the company in the past.  I have been a strong advocate of using their services, and have made recommendations to friends on their behalf.  After this fiasco, I will not be using them for any new purchases, nor will I be recommending them.  Buyer beware!!