Depends... How flooded did the interior get, or did the seals hold and keep the water out? IMO looking at the pic it doesn't look that bad.
As for the engine water isn't going to ingest itself into the motor. IMO I would remove all the connectors and spray with some contact cleaner on them, smear a little dielectric grease on them and reinstall.
I would definately check the oil and see if any water made it into the pan. Might as well change it and the tranny fluid just to be safe. Check the intercooler and the rest of the intake for stray water. Then give it a start and see what happens.
Might check the gas tank as well. They usually float keeping the water at bay, but you never know.
Oh one more thing. KBB is garbage. Use NADA (Clean retail) and local listings to bargain a price if they decide to total loss it.
All honesty I would accept the total loss if they go that way, buy it back, clean it, do the above ^^ and pocket the cash on go fast bits. Granted the car will be branded for the rest of its life as a water damaged vehicle, but if you keep it who cares? A "little green machine" should clean the interior, and for the seats best bet it to remove the covers and let the foam air dry, in the sun preferably to curb any mold growth.
As for resale, expect to take 20-25% off the going price (KBB, NADA, truecar, or Edmunds) since the title is branded. A branded title is almost the mark of death to some folks.
Last edited by atroph; 06-03-2013 at 12:08 PM.