I didn't know how to link my other post, so I just pasted it here.
I have had the same problem with Honda on my p500.
It blew up on me on a limerock dirt road nowhere near water. I carried it to the dealer only for the rep to come in and deny my claim due to water ingestion.
I knew the buggy had never been under any water atleast to that extent. So I called bullsh**. I then negotiated my price for tear down. They tried to rip me off on that as well. Loaded all my parts and buggy up and went to a different dealer and explained my situation. They said that sounds fishy because as they were unloading my parts they didn't notice any sign of water anywhere. Buggy was still practically new inside and out. They called a different rep in.
The new rep now examines my parts. Don't know if it was the same guy or not. He then finds no evidence of water. Honda calls and says "I cleaned parts in route from one dealer to the other." That's when I lost my cool and explained to them that the two dealers are an hr. apart. I left from one an hr. before closing of the other. There was no way for me to clean parts in that time. They would be hearing from my lawyer.
They called back a few days later and said they were going to "goodwill" my parts. I would just have to pay the labor.
I ended up paying the labor. I then went back to the original dealer who said the water was there, spoke with the GM and got a awesome price on the 1000 I have now. They gave me a really good trade in on my 500 buggy because it was practically a brand new machine again.
I started to get on a while back and start a thread. There was nothing like this on here at the time. Didn't know if anyone would believe me, because it is a Honda.
We may just need to start a thread... "Problems with mother Honda"