Both Lycoming and Continental require a tear down inspection if the prop is damaged. All sorts of stuff CAN happen inside. You could get lucky but you also could not. Most any insurance company will pay for the tear down and rebuild , assuming there was insurance.
Personal experience. We have a 172 with an O-300. Parked, tied down. A freak gust of wind picks up the tail ( no rope there), lifts plane, strains a wing rope which breaks, stands plane up on the tripod of it's nose, left gear and left wing tip. 20 minutes later another gust blows it the other way and it lands on it's gear with a bunch of folks standing around watching. It was a sunny day, not a cloud in the sky( eastern Washington), and my son was only going to town for 2 hours. The 182 next to him flipped over on its back, no tie downs at all.
We removed the spinner which was cracked, ( one tip of prop was bent a tiny bit from contact with the asphalt), duct taped the wing tip, got a ferry permit, test ran it like crazy, and he flew it 2 hours home with no effect on flight at all.
We then removed the wing for repair to the outboard 5 feet. Insurance company wanted to tear down the engine, I said that seemed silly, it only had 600 hours and was not running. They paid for wing repairs, a prop overhaul, a new spinner and all my labor ( I am an A&P with IA). We flew happily into the sunset....UNTIL....8 flying hours later when the oil change came due. The screen was FULL of chips of aluminum.
Called the insurance company back, they said, go ahead and remove it and have engine shop tear into it. The shop found the piston pin cap on cyl 1 and 2 were worn down to a small pea size. No explanation given. I bought 6 new cylinders and spark plugs, and had the mags looked over, the insurance company paid for all the rest. We have a fresh overhaul now.
What caused this? Ins. Co hired an engine expert, he came to no conclusions. I suggested that since the airplane stood on its nose for 20 minutes all the oil drained forward and some got behind the piston pin caps, then when the engine ran, the pressure from heat pushed them against the cylinder wall and ground the soft aluminum to bits against the hard steel cylinder. They decided they could neither prove nor disprove my theory and decided to pay the claim since we had a record of clean oil prior to the incident. ( AIG, in spite of their financial track record they treated us right)
All I am trying to say here is that an engine pedigree is important. If you don't know the history of good engine operation then you have to be suspect.