I would say the Storm water got into the Oil .. It is true water in oil is a sign of headgasket damage, but I would be very reluctant to state the headgasket is damaged without stripping the head off the car and checking the gasket (the vehicle is a 2006 and this make/model is not prone to H/G failure) .. I think the insurance company are trying to blame the headgasket to get out of paying ... tell them you want the engine stripped down (maybe by an independant inspector) to check for headgasket damage ? as you feel the water in the oil came from the floodwater and NOT from the headgasket failing !!
Hope this helps
Wednesday, March 10th, 2010 AT 4:23 AM