@chyna The cause of the water damage makes all the difference, at least to an insurance company. With the recent flooding in Colorado, I was lucky, but I had a friend who had basement flooding from sewage backup. The insurance company said since it was from a FEMA, since it was considered a natural catastrophe.
So the difference between non-flood water damage and flood-related water damage can mean the difference between having a claim accepted or rejected.
@Judi, Talking about selling the house, as was mentioned above, if you have the repair done, make sure there is no mold. If there is any mold, make sure to have it properly remediated when the damage is repaired.