Retrieving the drenched and tattered insurance policy from the swirling waters, we pored over the document until we found the words of doom: “Not responsible for damage caused by floods.”

Actually, your original reads well. I just added some imaginary details.

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Cheers,

Bruce

The insurance policy said, in fine print, that they were not responsible for damage caused by floods.

The small print on the insurance policy said that the agency is not responsible for damage caused by floods.

They has no antecident in the sentence. The it is redundant.

I’ll take a guess…

The insurance policy said that they were not responsible for damages caused by floods, in small print.

Our insurance providers stipulated in small print on our insurance policy that they were not responsible for damage caused by floods.

The insurance policy stated in small print that they are not responsible for damage caused by floods.

That’s my guess.

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