Phones + water = insurance replacement.

I use the small armband holder supplied by Aquapac http://www.aquapac.net/ukstore/erol.html#594X1129 after I drowned my N95-1 whilst racing through water filled ditches. Its totally waterproof (to 15') and has a front cover that allows touch screens to work.

The N95 fits comfortably in the small version even when its fully open to expose the GPS antenna and to date I've had no problems with it