2007 180 Challenger surge

[meangene21]

So I took the boat in because it would not go over 10mph or above 4k rpms. Turns out the Intercooler is busted which caused water in the oil !!! YAY me. I spoke to the shop and they said that Insurance coverage does cover this.. So, is there any one out here that has had this happen or something similar and had it covered by boat insurance? If so is there a magical word I have use ?

 

[meangene21]

BTW: Im looking at the parts and can someone explain to me how the intercooler is cooled off and why it is sitting inside the air intake? Or am I reading the print out wrong? I'm trying to figure out how water in the oil could happen via a bad intercooler..