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TBH, that seems reasonable - whilst I get everyone else saying take them for £x000s, you're the one who has to live next door to them, so I wouldn't go punitive for the sake of it.
Also, assuming it was the builder, shouldn't any claim be made on their professional insurance, rather than his [neighbours] own insurance?
branwen
NotThamesWater
Thanks everyone. True it is his choice to claim on insurance or not, and it'll be a hassle building a bike up. It's hard because he's a friendly guy and I've got to know him a bit since the building work started.
Cost of a new frame from planetx is £550. Think I'll ask for £650 to factor in cost have it rebuilt.