On September 13, 2020, about 1632 Alaska daylight time, a Piper PA-22 airplane, N8875C, was substantially damaged when it was involved in an accident near Homer, Alaska. The private pilot sustained minor injuries. The airplane was operated as a Title 14 Code of Federal Regulations part 91 personal flight. The pilot reported that he was conducting a local flight from the Homer Airport (HOM), Homer, Alaska. He said the flight was the airplane’s first since an annual inspection on July 21. While performing the preflight inspection, the pilot sumped each of the four low point fuel drains and removed about 1/2 inch of water from the left-wing tank drain. The other samples were clear. The wing tank fuel levels were about 3/4 full. He stated that after starting, he taxied a long distance to runway 22 with the fuel selector on the right tank, and then switched to the left tank for takeoff. After takeoff and during the initial climb from runway 22, about 200 ft, the engine experienced a total loss of power and the propeller continued to windmill. The pilot performed a forced landing to a beach on Kachemak Bay near the airport. During the landing, the left-wing tip struck the surface, which resulted in a loss of control. The airplane sustained substantial damage to both wings and the fuselage. The pilot stated that the airport had experienced heavy rainfall the previous month and that the wing fuel tank cap gaskets had recently been replaced due to wear and corrosion on the filler necks. The airplane had experienced water intrusion into the left tank. Postaccident examination of the airframe revealed that the right-wing fuel tank cap was secure in place. The right tank filler neck exhibited corrosion on over 25% of the surface, and a badly deteriorated and crumbling black gasket was present around the filler neck. The left fuel cap was secure with a gasket in place, and the tank filler neck exhibited surface corrosion on about 40% of the surface with some metal deterioration around the neck. The base of the left-wing filler neck indicated a 3-inch separation from the fuel tank around the circumference and outward from the neck about 1 inch. The fuel selector valve was in the off position and moved smoothly through the left, right and off positions, and all detents were evident. The gascolator was located in an area of significant impact deformation. The gascolator bowl was separated from the cap and contained no liquid. The filter screen was clear of debris. The propeller rotated freely by hand, and crankshaft and camshaft continuity were confirmed. This ignition system was functionally tested with no anomalies noted. The piston heads, cylinder walls, and spark plugs indicated normal wear signatures. The carburetor was attached to the oil sump and exhibited fractures at the throttle valve housing. Engine control continuity was confirmed from the cockpit to the carburetor and airbox. The carburetor was disassembled, and no mechanical anomalies were noted. A fuel sample from the carburetor bowl contained a mixture of brownish water and fuel. The inlet fuel screen was wet and clear of debris.