Why is it unacceptable? If it's water damage don't you think there might be a moisture problem under the cabinets as well? You can't settle up with the insurance company after the fact...I would say it's unacceptable to repair the damage without pulling the cabinets
This entire post is about whether an installer should lay flooring under cabinets ( before cabs are installed ) or afterwords. In presenting arguments for both scenarios, it was suggested by me that if an installer install the flooring first, then the cabinets are installed on top of the floors, and a water leak and subsequent damage ensued, then properly removing all the damaged flooring would be difficult. After doing hundreds of kitchen water damage repairs to wood floors, rarely are any cabinets seriously damaged. Nor is the subflooring either. WHY? Because the cabs are installed on shims, feet, hold-offs and similar. The water typically drains down through the subfloor at some point and the cabs are not damaged, but not before soaking the wood flooring. Since subfloors are designed to be allowed to get wet and dry out and still perform fine, they are not usually damaged either. Not enough to warrant removal. So, in most water damage scenarios, all that is needed is to repair the leak, remove the water damaged portion of the floor, thoroughly dry out the subfloor and when fully dry, re-install new flooring.
If an installer were to install the hardwood UNDER the cabinets and that wood got wet, it would be a wet sandwich, creating the possibility of mold growth that the repair person could not get to without removing the cabinets and counters. I don't know about you but here, the custom build kitchens run into 6 figures. What is unacceptable is to create a problem that did not need to be created ( ei: install flooring under the cabinets ). Of course, if a restoration company stated the cabinets absolutely needed to be removed to allow the kitchen components to be repaired, then that is what would need to be done. But that is NOT the point of this post. The point is, what is better? Install the floors before OR after the kitchen cabinets? Now, make you argument for one way or another.