Once you get your machine and if it is in the condition you expected, be sure to leave negative feedback concerning their communications with you and the insurance situation. That is what it is for to warn others who may be considering purchasing from this seller.
Not sure if Paypal was an option but when I purchase from eBay I always pay through Paypal. They become a third party and will go to bat for you if need be. Hope it turns out to be safe shipped when it arrives.