RedactedNarrative: Operator stated they were drifting in the cove with the engine idling and noticed smoke coming from the engine compartment.  They lifted the engine compartment cover.  They smelled fuel and saw fuel leaking from a hose onto the engine.  A few minutes later the engine compartment caught fire and the majority of the occupants evacuated the boat.  They used multiple hand held fire extinguishers to extinguish the fire.  This was the second time the boat had been used since purchase.