Frost,

I'm a little confused, is your boat an inboard?

Is it an enclosed cooling system? Or is it raw water cooled?

On my aluminum boat (outboard) I keep the propane tank in a milk carton on the swim step and run a hose to the heater or the stove. I think the tank storage is the thing to worry about. I disconnect the tank when not in use and only hook up when I'm using it. On my boat there is enough air-flow if anything was leaking I'd smell it for sure.

Of course on the inboard its enclosed cooling system and I have a heater under the seat, off the engine.

herm
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too much of anything is just right