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The wreckage in this location's name refers to a sunken house, which has collapsed into a pond of toxic water. The area is highly irradiated, and a tent is just outside of the house itself. An open safe is submerged in the water where the floor of the house once was. It contains an alien blaster and the rusted key, which is used to unlock the shack on top of Freddy Fear's House of Scares. This is the beginning of a key hunt to unlock TNT dome #2 at Black Mountain Ordnance Works.
The toxic pond and wreckage appear only in Fallout 76.