I had a basement flood in my house a few years back. Fortunately non of my audio gear was damaged, but the property damage to walls and flooring was fairly bad. Our insurance company came in and estimated the damage to be in the 30K range. I was offered 2 choices. Have them send in a contractor to re-do the basement, or have them cut me a cheque, and do the work myself. It was pretty straightforward for us.
BTW, I live in Canada, so regulations may be different here, than in the USA