What does it mean the damage type Water/Flood?

A “flood title” on vehicle details means the car has damage from sitting in water deep enough to fill the engine compartment.
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What is NMVTIS (National Motor Vehicle Title Information System)?

NMVTIS is National Motor Vehicle Title Information System implemented by US Department of Justice. The NMVTIS is designed to protect consumers from fraud and unsafe vehicles and to keep stolen vehicles from being resold. NMVTIS is also a tool that assists states and law enforcement in deterring and preventing title fraud and other crimes.

All states DMV`s report the data to NMVTIS and check against NMVTIS database every time the title is transferred. DMV`s have the right to deem any title branded according to the records in the NMVTIS database.

All Clean title vehicles sold through salvage auctions have a chance of the title becoming salvage when processed by DMV. Please refer to http://www.vehiclehistory.gov for details.