Ring Steven at PIC - he will tell you the correct interpretation of the policy wording.
I had the very unfortunate incident of hitting a submerged object (still do not know what!!! - except it wasn't rocks) and whilst it didn't damage the engine it did enough damage to the hull that I have just had it written off.
I am now awaiting completion of a new hull.
The assessor seemed slow at finalising and sending off the report but the claim was settled in full - PIC's policy is a "specified value" and I have received the full insured £'s
Never want to have to claim again - but my experience is that it is a good policy.
You only find out whether your premiums are worthwhile when you have to make a claim