Well, I can see their point of view, but, man, do I feel your pain. What just might help is if you can document what recent care you'd taken of the exhaust
system, anything to show you didn't just let it rust out, some mechanic
looked at it, and thought it was good to go..
Insurance companies, unfortunately for those of us who hold insurance, are in business to pay dividends to their stockholders. If we're lucky, we turn out to get a claim paid, and I know people, struck by lightning
who did get a fair payout, around 30k because it took out all their electronics
. So it does happen the way we think it should, sometimes.
Good luck with it, mate, maybe you can persuade them.
Did you raise the vessel and start repairing same, or is it a total loss that you're going to have to pay to remove from the environment