-Smell. Particularly here in the rainy Pacific Northwest, it's?very hard to dry out a flooded car quickly enough to prevent mold and mildew in the?carpets, padding below the carpets, and the upholstery.
-Moisture in odd places inside the car.?For example, look for?moisture or condensation behind the gauges on the dashboard, a clock,?and the display panel of a stereo. (Note: It's fairly common in the Northwest to see?water or condensation?in exterior lights, like taillights, turn signal lights, etc. in older vehicles. That's not necessarily a sign of flooding. Rain may have just seeped in through the gaskets that are supposed to seal the lights.)
-Check the car's unique Vehicle Identification Number to see if it has been reported as a salvage vehicle. These numbers are typically found on a small metal plate visible through the front windshield at the front of the dashboard. The National Insurance Crime Bureau runs a website where you can check VIN numbers -- up to 5 a day -- for free. (Hint: it's case-sensitive.)
-Dampness, mold, silt, mud or rust in low spots on the vehicle, such as under the spare tire in the trunk, the?interior crevices of the trunk behind the wheels?or in the glove compartment.
-Interior rust, such as springs under the seats.
-Check the car's oil. Engine oil contaminated with water will often look like chocolate milk.
Source: http://wainsurance.blogspot.com/2012/03/flood-awareness-week-how-to-spot-flood.html
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