A few months ago, I struck a submerged object with my Mercruiser 190 hp. - 2000 model. This boat has less than 200 hours of operation. I cruised back to boathouse under low power, inspected prop (2 blades chipped, 1 slightly bent); gear lube level is fine. A few weeks later (weekend lake cabin), I tested the boat out since the prop damage was not too severe (gear lube slightly down). After about 10-15 minutes of operation at moderate to high speed, lost power to prop. Towed back to boathouse and then to repair shop. Upper unit is fried (mostly melted). No lube in reservoir. Lower unit and prop shaft is fine. Insurance adjuster denied claim since it was a "mechanical failure" rather than a "strike failure". Anyone seen this? Opinions? Ins. co. has agreed to review the claim if experts say that the strike caused the failure. Seems more than a coincidence to me.
I'm no expert here but; You did replace the prop, right? Hard to say what the cause was, other than your gear lube was low. How low? Any gain or loss of gear lube is cause for concern,(other than normal expansion/contraction from operation). If you lost gear oil, where was it leaking from? In my inexpert opinion, you are going to have a hard time proving cause and effect, especially if your lower gear case has no leaks.....J