I guess it really depends on a few factors..

First off do you know the extent of the damage to your wiring?
How expensive a fix is it for you? And if so are you sure it's the only damage that was done? If you know the extent of the damage and it's only a few wires for you to solder.. And you never plan on selling it and you want the cash... The. Go that route..

If you may sell it in the future and don't want the salvage title and they will stand by the repair and warranty the fix and ensure that if will work like it was new.. And you don't really care about putting the cash in your pocket.. Then that may be the way to go.. Only you can decide my friend.. It's unfortunate that it happened but at least you had insurance.. Definitely better than the alternative of not having any..