Heres what I think happened. Based on you comments.
The Lexus dealer tore the engine down to inspect it. They say the wter pump looks like it siezed. The parts surounding the water pump are melted, including the rotor and spark plug wires. The timing belt was burned. Two pistons were melted at the top and the cylinder linings were scored. The head looked ok visually, as well as the head gasket on one side of the engine. The one the took apart. That side had only 50 psi compression in two cylinders. This engine got very hot after only five miles on the freeway.
I am thinking that the pump froze and got hot enough tho burst an oil seal in it's close proximity. The oil cought fire and burned the timing belt and surrounding parts.
The engine was not being cooled and was running off time. This caused the massive damage. I think the water pump started the chain of events but the pump failure alone could not have melted the engine. I think the oil fire burned the timing belt and that's what really destroyed the entire engine.
The insurance investigator says there was no fire. Based on his inspection of the engine parts.
What can you engine experts offer? Could my scenario explain this damage?
TTT