[njsteve]

Salt water flooding is the worst case scenario. Salt corrodes all wiring and all electronic components. There is no way to stop the process.

There is no way any insurer would take the possible risk (especially in a modern car with airbags, ABS, etc) of a malfunction that could cause an injury/death. For example, after Sandy thay had hundreds of the flooded cars' airbags self-initiating from the electronics slowly corroding.