07 SolaraSE w/ head gasket or cracked engine!

[copycatii]

I have an 07 Solara SE with about 75k miles on it.
BackStory:
About 3 months ago the parking lot in my complex flooded from a poorly cleaned drain (another story in itself!) which resulted in only 2-3" of standing water in the foot wells of my car (authorized insurance body shop said it did not reach the engine, replaced the padding and carpeting of the car).

1 month ago the car shuttered and stopped which ended up being a busted water pump which I got replaced.

4 days ago the car idled very roughly with white/cloudy exhaust smoke. Check engine light came on. While bringing it to leave at the mechanic the engine temp shot up to Hot as soon as I got on the highway. Turned off the car and towed it to the mechanic.

They are saying blown head gasket most likely once they fully get in to the engine they will know if it's this (approx $1400) or a cracked engine block/head (used approx 2k for the shop plus 2k labor = 4k to me).

My question to all of you is... is it worth them going in to either a) replace the head gasket if that's what it is, b) replace the engine with a used one (they say is cheapest option than new or rebuild) or c) if it's not just the head gasket to replace, leave it apart and figure out a way to unload the car to get a new one?! (or not go in to the engine at all and unload it now inoperable anyhow). I have about 1200 left on my car loan which I was very much looking forward to not having a car payment!

Thoughts welcome and appreciated!

[nhcycle]

You may consider a supplemental claim for the water damage if you and an independent mechnic can prove water got into the oil which seems to be the more plausible case as you had these problems near-term post-flood......

[copycatii]

Thanks! I'll mention it to my mechanic (which is not the same mechanic that was my insurance authorized shop I had to go to for the water) but they already did say that the water pump dying/replacement and if it's a head gasket that it wouldn't have been flood related. I'm not too hopeful they'd change their story unless they happen to "see" water in the oil/lubes they see that's filling the #2 and #3 cylinders that are misfiring.