Soory to hear.... I have repaired many boats and negotiated hundreds of repairs with ins. co's. over 30 years. First make sure you received a fair amount for your boat the amount IS negotiable. I would NEVER except the first appraisers offer...period. Ins co's as much as you think there your buddy is interested only in paying you the very minimum amount acceptable. Use comparable boats in your area to value check. Ins. co owes you Full retail value plus sales tax usally in most states, not auction prices.
On the salvage value it usally seems to be between 15 and 25% of retail value. From the damage I see get rid of it, let it be someone elses pain in the neck. Damaged in that area is probably the very worst area you could pick on the hull. My MC was repaired in that same area more than 15 years ago and never an issue so far but no where near the extent of your damage. Good Luck... sounds like a good ebay boat or conect with a salvage company called Copart they may auction it for you.
93 ProStar 205, 351 HO, Syracuse N.Y.
1954 Custom Deluxe 17, Chrysler 6 inboard
5 @ 28 off @ 31mph on a Connely F1X new for 2012 Radar Vice 68 with Vector double boots