I always insured my LX200 for what it was worth to replace it. It would have got ugly had UPS ever damaged the scope and denied to pay the full amount. I'd pull out a Sky & Telescope and show them what it would cost to replace the scope especially if it was damaged beyond repair. There's no way people have reciepts for everything they ship that's valuable. Ebay might also be a good source for valuing a used LX200 if you really want to know what it's market value is. That's just my take... I didn't look at is over inflating the insurance... I looked at it as... if they broke it they'd buy me another one.
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