I have a boat insurance claim that I’m going to be lowballed on

Hit something in the water and damaged my 1994 Mercury 60 hp lower unit. Pretty straightforward until one learns that sourcing repair parts is impossible.

Ergo next step was to sort a remanufactured or used lower unit, which the marina found and submitted to the insurance company. Great price $1095 plus 1.5 hours of labor. Shop parts and taxes took the repair to $1500. To me that's a treat for the insurance company.

Oh, no, mon frere. Mechanic says no guarantee this would fix anything as the sound of the engine without the lower unit makes him think the impact jammed something into the flywheel. (idk enough to say more than that) When I asked if he would just bolt on a different lower unit, he said no way. He would just re-power the boat with an entirely different motor–obviously more than a $1500 fix.

Insuror has gotten the estimate, pictures and narrative from the mechanic. They wanted a more itemized estimate of the repairs but were told the unit was a one piece replacement and besides the unit cost there were only the fees the shop indicated on the estimate. I told the insuror to go ahead and make their decision based on evidence provided. (Again, we're just talking about the original $1500 and I would just sell the Pontoon boat and trailer and lick my wounds). I have told the marina that no matter the insuror's decision I would not be fixing the boat so they're pretty much out of it now).

Also in my most recent correspondence with the insuror, I have said that if they cannot pay the claim as submitted that I would cancel the claim and file a new one for an engine replacement up to the policy limits.

So that's where we're at with a phone call tomorrow morning with the adjuster to discuss the Claim.

Anything that I'm off base with here or any suggestions besides again pointing out that this $1500 estimate is the best they'll ever do in settling this Claim. I don't regard my plan to submit a new claim for replacement as a threat but rather just a pivot towards a new solution.

Thoughts?