Most do...but the amount they will cover depends on how much coverage you paid for. I thought my claim was cut and dry. I hit a stump that just about threw us on the floor. The motor was not destroyed but the transom sustained broken welds and was bent. Progressive and their independent surveyor (that they picked and paid) claimed the welds were bad.
I don't know too many boat manufacturers that will expect you to hit things and not have some sort of failure in their construction. I bet Ford won't give me a new fender if I hit a light pole.
Progressive Marine Insurance SUCKS!. If you hit a submerged object they will try to prove manufacturers defect....stay away from them.