Polyvinylchloride is very strong and resilient. Your records are definitely recoverable. I lost many of my records to a flood too, but my problem was that well-meaning in-laws stacked the albums horizontally on a mantel that warped the records. That was in 1979.
I saved some that I couldn't bear to dumpster and about 38 years later I found that detergent and a handheld steamer could completely clean the mold out of the grooves.
Unfortunately that is time-consuming and labor-intensive, especially when 2,000 LPs are involved. So you need to hire a professional cleaner. My point is that they can be recovered. Just find a good cleaning service, get the estimate, and make the claim with the insurer.
The record jackets, however, are another issue. :(
