Here is info on how flood insurance works.
Maximum limits for flood insurance are:
Residential - $250,000 for the structure and $100,000 for the personal property
Commercial- $500,000 for the structure and $500,000 for the contents
If you think that your insurance company is denying payment for damage that you think is covered by your policy then you can call the California Department of Insurance to investigate your claim.
For people not affected by this disaster, here are some tips to prepare for an emergency.