Re: Potential for complete loss?
Then the transom is toast. there was flex. I would say you in the up position you could move the outboard so the prop would travel 3-4 inches.
Probably so then....
And does the rubber rubrail need to come off first? Pardon the ignorance. This is my first go around on a boat restoration.
1st you expose an end of the rubber rubrail insert. At the motor end, there is probably a metal cap w/ a single screw holding it on. If the metal cap wraps around a corner, there may be a screw on each side. Once the end cap is out of the way, you can slip a phillips screw driver behind the rubber/vinyl and gently work the insert out of the aluminum track at that point, and gently pull it away from the channel. Once removed the insert will shrink, so at reinstall, you may need to leave it in the sun for quite a while so it gets soft & pliable. Then re-install, possibly stretch it to be long enough, and screw into place.
KEEP ALL THE rubrail screws & caps, no matter their condition. The caps can be tough to replace. The screws you can take w/ you to a hardware store to try & match if you go back w/ new. Except the end cap screws, all the rest of the rubrail channel screws are probably generic. You might want nice new stainless screws for the end caps. Some find their boat held together by regular old black oxide drywall screws. Mine was.
Once the channel is also removed from the boat, keep it tucked away somewhere safe too. You don't want the insert's track damaged, that'll only make it harder at reinstall.