I owned a water damage restoration firm and recently sold it. I know the guys that like to rip the whole nine yards out in some cases it is nessesary but there are other options. Im not sure how you were flooded, faulty foundation or plumbing, in any case fix the problem. If your not able to rectify the problem w/ your insurance company I would recommend replacing your carpet with a commercial type carpet or carpet without padding. If this problem presist you can easily extract the water from your carpet w/eaz. After water is extracted mix 1oz of bleach to one gallon of water and apply to fabric w/ pump up sprayer to avoid any potential mold growth. Your carpet if caught in time is always salvagable but the pad should be discarded this is where your time is envolved removing the water. Hope Ive helped somewhat please e mail any questions.