Any flooring except maybe tile that is submerged under water for 12 hours will more than likely need to be replaced. So I'm not sure what a 12 hr. water test will tell you. There are exceptions to everything but take a look at hardwood that has been in place for 10-15 years you'll see dings and scuffs but in comparison to carpet, tile and laminate it holds up very well. No doubt kids are tough on floors but at least with hw you can have it refinished when the kids are less destructive. I would go one way or the other, install very cheap laminate and replace when the kids are older. Or go hw and refinish "if" needed later. Maybe a combination of laminate in bedrooms and hw in living areas. As far as water damage to hw, I have had my share of floods, but I was always around to clean it up with no noticeable affects.
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