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@hippy
I rang M&S yesterday and the woman said that the bike has to be specified, using replacement value. She said that a separate set of 'race wheels' is a separate item and would be covered.
I am now debating whether or not to get the updated quote - no idea what this will add to the costs - or just bail on the insurance altogether or at least until I find a better offer.
This person says it added another £600 to their insurance..
http://singletrackworld.com/forum/topic/best-cycle-insurance-now-that-ms-are-charging-full-whack