Thanks Justin/Lucky8
They do get moisture in them, but it is not from wading, so I think the warranty company kind of took advantage to you there. How would they know in the first place anyway, it is not like they work on them. I suspect the moisture issue, that some may dispute even exists is due to heating and cooling condensation, which does not escape, tied with the low volume of oil.
We have done more rears than front in fact, but they both need to be changed eventually, it just should not cost 4k to do it. I would say that checking the CV joints is a good idea, but the most common misdiagnosis is wheel bearings. It is difficult to hear where the noise is coming from because it travels up the frame on them.
I suggest changing your Diff fluid every 30k miles or so to prolong their life due to rust failure. Eventually most everyone will need them. Beyond the scope mentioned above, chassis ears are a good item to borrow if you don't have them to track down the noise.
Plenty of Rears in stock if you need one.
Just FYI, I live in Texas, I had the same rust issue, no, no water here hardly, still the rust happens.
Here is a picture if it helps you. So their conclusion about wading is simply an excuse, which is being unfairly stated to their advantage. You buy insurance to protect you against unknowns, with the hope you don't have a problem. It is a bet for you to pay them in case something happens. They sell to you with the bet you won't have a problem. If they failed to inspect it ahead of time, they can't use the excuse of a pre-existing condition now, they took the bet.