What I'd be more concerned about is not the lugs themselves, but the wires connected to them.
Having water get into any sort of wiring where it is terminated at a lug (or whatever), can cause water to move up under the cable insulation (by capillary effect), this can then cause a failure later on as the wire corrodes from the inside out.
I myself would be rather hesitant in re-connecting anything that has been submerged, without a VERY good megger and continuity test being done on the the whole place.
Let alone certify it as safe.
Be very careful here, it could come back to bite you in the britches.
