Insurance: did you know?

Earlier I posted about the 'incident' I had with my airplane, and we
were well within the limits of insurance until the engine's 'dial-out'
was checked and found to be outside of limits; at that point we
anticipate the ins. co. will say it's totaled.

WEll, talking to the guy that will break it apart, he says 'talk to
the insurance co., tell them you'll repair the engine out of pocket"

Anyone had any experience haggling with the ins.co. on something like
this? - Mike