There is the odd occasion when insurance companies dont apply a catergory to a vehicle , alternatively Copart do sell vehicles on behalf of private entries , i am not sure which of these instances applies in this inst to this vehicle , but it was advertised as being HPI clear, perhaps the original owner will clarify in time
What we do know is that the water ingess was purely through the air intake , and absolutely nothing within the car or anywhere near the electrics ecu etc
Other than the inner engine damage sustained , the car still retains its full integrity in my view, if you blew an engine through lack of oil on the road , you wouldnt expect an insurance company to apply a catergory .....................you would bear the cost yourself for the repairs