More than 1,000 bodies have already been recovered in Derna alone and officials expected the death toll would be much higher.
Video obtained by Reuters showed houses in Mucum submerged by rising water, while streets and rivers were also flooded.
Access to and from Black Rock City, the event site, was closed "for the remainder of the event," organizers said in a statement on social media.
Idalia slammed ashore as a powerful Category 3 hurricane at Keaton Beach in Florida's Big Bend region, packing winds of about 125 mph.
One person died in Mexico amid reports of flash flooding in the peninsula, where some roads were swept away.