Ed, I'm sorry to read about your basement water issue, I personally know what a nightmare it can be. And to call it "inconvenient!!!", is a lot more mild then I thought it was. I went through it twice in my previous residence, and the basement was completely finished. And on both occasions, I was away from home and my EX had to handle the mess. To say that she wasn't happy when I called her, would be a huge understatement. I agree with the removal of the water heater, and any other electrical items that were submerged. Plus, any drywall or insulation that came in contact with the water.If there was drywall on the wall that was effected, it with have to be removed also. There is nothing much worse for supporting the growth of mold, you don't want to inhale those mold spores. If there was enough damage contact your insurance company. If not, don't even mention it to them, they don't need to know about it if you are not making a claim. And if the insurance companies you deal with, are like the ones around here. They are always looking for a reason to either drop covering you, or, hit you with an insurance up-charge. Take care, and good luck with whatever you decide to do to clean this mess up.
Len