Ok, this is turning into a brain dump week
So to do this little technique we merely use a cut and fill method to find out where a given level would intersect the ground.
Step 1
Draw a rectangle over your surface

Step 2
Convert the rectangle to a feature line and assign it a constant level/elevation of what you require to check against

Step 3
Create a surface from this rectangle
Step 4
Create a volume tin surface comparing the ground to this flat surface
Step 5
Create a style which just shows a user contour only and set the layer, colour, lineweight etc and apply this to your volume surface
Step 6
Click on the volume surface and its properties and click on the analysis tab
Choose user contour, set one range and enter the value 0
Click Apply
Step 7
The line drawn is where the flood level intersects the ground surface
Step 8 - Change
So by turning on the rebuild automatic to your flood level surface and the volume surface, you can now select your featureline and adjust its level/elevation and watch how the flood extents take affect.
Fun, or scary depending if you live near the area affected!
Step 8 - Visualisation
Of course its nice to have a pretty picture of your work, so all we need to do now is restrict the flood surface to the contour line being drawn.
This you will need to extract the contour line from the volume surface, so select the volume surface contour line, extract objects and ok to the contour line.
Add this polyline to your flood level surface as a non destructive outer boundary.
(NOTE you may need to close the boundary like mine as the 0 level went outside my surface limits.)
Then using the techniques explained in my earlier post on boundaries and holes you can create a copy of your ground to cut a hole out of. Link to post
This will put your volume surface out of date also as you are affecting the surface it is based on, again make a copy of it if you prefer with the paste edit option.
Then of course set render materials to suit
Jack Strongitharm