Help please with the headset water promblem :''(

Hi there,
Could I have some advice please I currently own Eddy Merkx EMX-1 9 Months old and is facing the fact of a hefty repair bill for a new Headset , This is due to water damage , I cannot currently thing of how I have attained water in the headset, Has anyone had a similar problem with any other road bike or type of bike ?
And have you claim on the warranty or paid for the damages outright?