Yikes, that is scary, I have driven through my share of standing water here in Florida. I know my Wife will push it driving through deep water more than I would.
I would definitely try the insurance route, a colleague once totaled his company car by driving through water. It was covered as flood damage, but it all depends on the carrier.
I don't know of any engine sources, you should see what your dealer could find. I would also contact some independent facilities to see if they have a source, the dealer may not want to deal with an engine from an outside company, your best bet may be to have the car moved to an indie.
Last edited by tampamark; 12-31-2012 at 08:18 AM.