From late 80s/early 90s. It was about a mouse family that lived inside walls of a building and had furnishings made of discarded household objects. Then one day their home is destroyed and is described as a “catastrophe” which I remember because that’s where I learned that word. I think a flood?
Not quite mice, but could you be thinking of The Littles and the big storm by John Peterson. I know I got a scholastic version of this book from the school book club in the late 70s early 80s. Part of a series about the Littles, who are tiny humans but with mouse-ish ears and tails.
In the big storm. They live in a house belonging to the Biggs and from memory in this one, there’s a storm coming which floods the Biggs’ basement.
These were published earlier than the 1990s, but could it be either The Littles or The Borrowers (who were not mice but tiny people with tails)? The Borrowers lived in the walls of houses using common household things for furniture, etc. and I think in one volume there was a flood.
Bit of a long shot, but there’s also “The Mouse and His Child”, which is the story of 2 windup mice, and a rat named Manny who end up on a series of unexpected adventures, part of which involves being flooded at the bottom of a pond. The book cover of mine shows the rat steering them in a sardine can “raft” over a waterfall. The story is chock full of a few profound characters (a frog, a blue jay, and others) that often speak in very obscure and mature language. I skimmed looking specifically for “catastrophe” but didn’t see it. Book was written in 1967 but had a number of republishings through the years including last year.
Try secret of nimh. It’s a mouse family living in a cement block. Their house starts to flood with the children in it.